The Editor Zambia
Zambia’s return to a single-digit inflation rate of 9.4 per cent in January 2026 marks a significant economic shift – it is the first time the rate has fallen below 10 per cent in three years.
This is an indication that the economy is on the rebounding trajectory after years of tough and unpopular policy decisions by President Hakainde Hichilema. 
On the other hand, the local currency, the Kwacha, has continued showing a significant strengthening trend against the US Dollar (USD), reaching a 28-month high of ZK20.82 per USD on January 30, 2026.
The Kwacha has appreciated significantly in recent months, making it one of the world and Africa’s best-performing currencies in 2025, a trend attributed to improved economic indicators and market sentiment.
The strong currency is not by chance or artificial, but it is driven by improved global copper prices, disciplined fiscal policy, Bank of Zambia (BOZ) tight monetary measures, and an overall boost in investor confidence.
Putting back the Zambian economy back on track that was in the Intensive Care Unit is not a walk in the park – it is a serious and challenging task.
Zambia is coming from a junky status in economic rating. This is after defaulting on sovereign loans interest payment coupled with depleted foreign reserves of partly around one month import cover and over 800 million dollars uncleared fuel invoices.
In November 2020, Zambia became the first African nation to default on its sovereign debt, missing a $42.5 million coupon payment.
President Hichilema inherited a dead economy. Resuscitating it needed bold and hurting decisions, which have resulted in putting back the economy back on track.
Unfortunately, and without shame, the same people who borrowed aimlessly are the ones misleading citizens. The Patriotic Front (PF) and allies are bitter because President Hichilema is doing things they failed to do during their time.
The Zambia Economy is back on track, and this is not just a mere statement – it is the reality with all economic fundamentals pointing in the growth trajectory.
The inflation rate is back to single digit after years of hard work. The exchange rate is under control. The electricity supply is back with more projects coming on board.
The mining industry has started recording growth. The manufacturing sector continues to grow with increased Foreign Direct Investments (FDIs) on the horizon.
This is not happening by accident. It is the hard work of President Hakainde Hichilema and his team.
It is for this reason that President Hichilema has thanked Zambians for their patience, resilience, and continued support during the country’s economic recovery programme.
The sustained progress being recorded, stability in the Kwacha, a decline in inflation, and the booming manufacturing sector calls for a toast.
The economic fundamental gains will slowly start passing the benefits to the ordinary Zambian through reduced commodity prices, reduced cost of doing business, and more liquidity in the market.
The immediate benefits of this achievement include macroeconomic stability and confidence. Achieving single digits is viewed as a “psychological breakthrough” that boosts confidence for both domestic consumers and international investors.
Lower interest rates on the way, a sustained downward trend provides the BoZ with room to recalibrate and potentially reduce the monetary policy rate, which could eventually lead to lower commercial lending rates and a reduced cost of doing business.
Assured the Purchasing Power Preservation, while a drop in inflation does not mean prices are falling – it means they are rising at a slower pace. This deceleration eases the erosion of household purchasing power, particularly for essential items like food, which saw inflation drop to 9.4 per cent in January 2026.
The significant reductions in food prices, such as cereals (maize grain down 23.94 percent, roller meal down 21.82 percent), fruits, and vegetables, were primary drivers of the drop of the inflation rate.
President Hichilema deserves commendation. He has performed very well in his first term of office. President Hichilema deserves a second term to complete the task of rebuilding Zambia.
Despite the challenges the country was faced with, such as the huge debt, dwindled foreign reserves, unpaid fuel invonces, unpaid retirees, President Hichilema has managed to find money for social spending – freel education, meal allowances for students, social cash transfer.
This hard-working president deserves 80 per cent of the vote on August this year.
