By Ollus Ndomu
The Zambian kwacha has been on a bullish trend against the US Dollar since mid-last week, sparking an appreciation from $1 = K26.3 to now $1 = K21.2. This significant appreciation in the currency exchange rate has not only impacted the economic landscape but also reshaped the political dynamics in Zambia.
While commodity prices remain exorbitantly high, the appreciation of the kwacha has generated favorable political sentiments for President Hakainde Hichilema and his party, the United Party for National Development (UPND) as reported by The Financial Times.
The newfound strength of the kwacha has been a boon for the Hichilema administration, bolstering its image as a competent steward of the economy.
The currency’s appreciation has particularly dealt a blow to the opposition’s narrative, especially the United Kwacha Alliance, a coalition of defunct anti-Hichilema politicians who had been advocating for the return of former President Edgar Lungu to power in 2026. However, with the kwacha’s surge, their agenda seems to have lost traction, weakening their stance against the Hichilema administration.
In response, the opposition has raised concerns, alleging that the kwacha’s appreciation is artificial and politically motivated. Nonetheless, the development has instilled hope for economic recovery in a country burdened by high levels of public debt.
Former President Lungu, in his latest remarks, reiterated his intentions to challenge President Hichilema in the 2026 elections.
He pledged to reverse some of the policies implemented by the Hichilema administration, including the free education policy, which he deemed unsustainable.
Lungu’s campaign strategy revolves around criticizing Hichilema’s economic management and highlighting the debt crisis that characterized his tenure.
President Hichilema, a seasoned businessman turned politician, has been credited with achieving significant milestones during his time in office, including the introduction of the free education policy.
His resolve to steer the country towards economic recovery has been widely acknowledged, despite facing challenges inherited from the previous administration.
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