Zambia Leads Africa's Rally as Its Stocks Rank Second Worldwide

Zambia’s stock market has surged to second place globally in 2026, driven by record copper prices and stronger economic growth. The Lusaka Securities Exchange benchmark index is up nearly 17% in dollar terms, outperforming most African peers and trailing only Bulgaria. Colombia, South Korea, and Turkey are the only other markets with double-digit gains so far this year.

Copper prices, Zambia’s top export, have climbed above $13,000 per ton, while domestic energy supply has improved and agricultural output has rebounded after a severe 2024 drought. The International Monetary Fund projects economic growth to rise to 6.4% in 2026 from 5.8% in 2025.

This recovery has translated to strong performance in equities, with companies like Standard Chartered’s Zambia unit and Pamodzi Hotels leading the rally.

The Zambian kwacha has also strengthened almost 12% against the dollar since January 2026, making it the world’s best-performing currency. This trend reflects renewed investor confidence and improved macroeconomic conditions, including better fiscal discipline and a stronger mining sector.

Why Is Zambia Outperforming?

The surge in Zambian stocks is closely tied to the global copper boom. Rising demand for copper, driven by green energy transitions and industrialization in emerging markets, has benefited Zambia, which is a major producer. At the same time, the government has taken steps to stabilize the economy, including reforming power infrastructure and expanding agricultural productivity.

Improved energy access has allowed more industries to operate at full capacity, boosting productivity. Meanwhile, agricultural output has rebounded after years of drought, supporting rural incomes and food security. These factors have helped lift overall economic confidence and attract more capital to the stock market.

How Are Markets Reacting to the Rally?

Zambia’s strong performance has sparked renewed interest in African assets. Investors are beginning to see the continent as a more viable option for diversification, especially as larger markets face valuation concerns. The Zambian stock rally is part of a broader shift, with mining and energy sectors gaining traction across Africa.

Analysts note that Zambia is emerging as a case study for African markets overcoming past challenges. Years of currency instability and capital controls had previously discouraged foreign investment, but these risks appear to be diminishing. The Zambian government’s decision to engage with the IMF on a new program also suggests a commitment to fiscal responsibility.

What Are Investors Watching Next?

While the current momentum is positive, investors are monitoring policy developments. Zambia is in the process of finalizing a new IMF program to replace its expiring arrangement. Finance Minister Situmbeko Musokotwane emphasized the importance of staying on a reform path during the transition period. A successful agreement would likely reinforce market confidence and support continued economic growth.

In addition to macroeconomic policies, investors are keeping an eye on corporate performance. Companies in key sectors, such as copper mining and banking, are under scrutiny for their ability to sustain earnings amid rising costs and inflation. For example, Caledonia Mining Corporation, a major gold producer, has outlined a significant capital expenditure plan for 2026, including a $132 million investment in a new mine in Zimbabwe.

The Zambian stock rally is not without risks. Commodity prices remain volatile, and geopolitical events could disrupt global demand. However, for now, the outlook is positive, with the market signaling resilience and attracting renewed attention from global investors.