Zambia’s copper production is on track for a record year in 2025, potentially exceeding 1 million tonnes’ for the first time giving a significant boost to its economy.

The rally is driven by confidence in Zambia’s copper industry recovery following a drought, leading to a strong outlook for medium-term gains.

The Kwacha advanced to 22.76 per dollar, the highest since February 2024, and had risen 23% so far this year.

Current exchange rate data (as of October 2025) shows the Kwacha trading at approximately K22.5 to K23.0 per dollar (since 0.044344561​≈22.55). A rate of 22.76 ZMW/USD is in line with or very close to recent figures. The overall strong performance of the Kwacha in 2025 is broadly supported by news of its rally earlier in the year, which drove inflation to a 14-month low in June.

This is occurring amidst global supply disruptions and rising copper prices (up more than 20% this year), positioning Zambia as one of the few places where output is rising.

Major companies like First Quantum Minerals and Barrick Gold are pouring billions into expansion projects (e.g., FQM’s S3 expansion at Kansanshi and Barrick’s Lumwana expansion) which are expected to boost production in the second half of 2025 and beyond.

Analysts have highlighted that Zambia “seems to be on a remarkable turnaround path.”

While copper is undoubtedly the largest and most important export, dominating the country’s export earnings (often over 70%). The country is actively working on diversifying its economy.

The mining sector itself is more than just copper there are other important minerals like:

• Gold
• Cobalt (a critical mineral for electric vehicle batteries)
• Emeralds and other precious stones
• Nickel (also important for the clean energy transition)
• Ores, Slag, and Ash (various other metallic and non-metallic mining products)

The Zambian government has been aggressively pursuing investments to increase production and processing of these “critical minerals.”

There is more than meets the eye

Agriculture is a major employer in Zambia and a significant contributor to Non-Traditional Exports (NTEs) exports other than copper, cobalt, and precious stones.

• Tobacco
• Sugar and sugar confectionery
• Maize (Corn) (although exports can be restricted to ensure local food security)
• Cotton
• Soybeans
• Coffee, tea, and spices
• Fresh flowers and horticultural products

Diversification

• Zambia is a net exporter of electricity, primarily to neighboring countries.
• The country also exports a range of other products, including cement, chemicals, and beverages.

While copper is the main driver, Zambia’s economy has a broader base, with major efforts focused on diversifying the mining sector and boosting agricultural and manufacturing output to create a more resilient and inclusive economy.

Despite a current copper boom that is helping the currency, the economy remains heavily reliant on copper exports (up to 70% of foreign exchange), leaving it highly vulnerable to a future drop in global copper prices. The key to future economic stability in Zambia is diversification of its industry.