Are exporters surviving with the K18/US dollar FX?

The Zambian Kwacha in recent months has witnessed an appreciation, against the US dollar, with the current rates seen by the Zambian Business Times – ZBT, indicating that the exchange rate is standing at K18/US dollar.

Also, government data indicates that Zambia recorded a trade surplus of about K41 billion in July which is and a reduction compared to K4.2 billion recorded in June 2026. Economic expert Fitzgerald Witika noted that the Kwacha appreciation against the US dollar is an advantage for importers to purchase raw materials at a cheaper price.

“The recent Kwacha appreciation which the country’s has seen moving from about K28/US dollar to now K18/US dollar making it cheaper for importers to purchase raw materials outside the country and produce finished goods locally at lower cost,” said Witika.

He added that even though Kwacha appreciation is an advantage for importers, however he noted that the appreciation doesn’t guarantee increased trade activity because it makes exports more challenging. Witika called on the government to consider introducing incentives in a bid to lower the cost of doing business for exporters, ultimately this is likely to increase trade.

“Appreciation does not automatically guarantee increased trade activity, and it makes exporting more challenging and that’s why the government needs to provide incentives, such as reducing tariffs on imported raw materials and commodities to lower the high cost of doing business,” said Witika.

Article by Justine Phiri