Key takeaways
- Annual inflation eased to 6.2% in August from 6.5% in July, the Zambia Statistics Agency reported on Friday, as food price growth slowed. It is the lowest reading in years.
- The window to challenge the 13 August election closed unused after police sealed the Constitutional Court and other superior courts on Monday, the final day for filing a petition. The office of Auditor General had fallen vacant the weekend before after a separate Constitutional Court ruling.
- President Hakainde Hichilema is sworn in for a second term at National Heroes Stadium on Tuesday 1 September. MPs-elect register at Parliament Buildings on Sunday 30 August ahead of the first sitting of the new National Assembly.
- Copper closed the week near $14,300 a tonne on its way to an eighth consecutive weekly gain, and the kwacha held a narrow band close to K19 per US dollar.
- A 90-day clock to the 2027 Budget presentation starts on inauguration day. Later in September come the Mandevu by-election on the 24th and the Bank of Zambia rate decision on the 30th.
The past week settled Zambia’s politics and steadied its prices. Annual inflation slowed to 6.2% in August, the lowest reading in years, the kwacha traded close to K19 to the dollar, and copper, the metal that pays for much of the budget, ended Friday near $14,300 a tonne. The week ahead belongs to the inauguration. President Hakainde Hichilema takes the oath of office for a second term at National Heroes Stadium on Tuesday, and with it the political and economic calendar of the next five years starts running.
This diary, the first in a weekly series, sets out what moved between Saturday 22 and Friday 28 August, what it means for your pocket, for business and for investors, and the dates worth marking between Sunday 30 August and Friday 4 September.
The week that was
Politics set the pace, but the week’s most consequential number arrived on its last working day.
| When | What happened |
|---|---|
| Fri 21 to Sun 23 Aug | The Constitutional Court rules the appointment of acting Auditor General Dr Ron Mwambwa unconstitutional on age grounds and orders him to vacate the office, which he does on 23 August. The post that audits every ministry and spending agency enters the transition vacant. Our Auditor General Explained hub carries the background. |
| Mon 24 Aug | On the last day allowed for a presidential election petition, police seal off the Constitutional Court and other superior courts, citing security, on the strength of an unsigned judiciary memorandum. The Law Association of Zambia and Human Rights Watch criticise the closure. State House denies presidential involvement. The petition window closes unused. |
| Wed 26 Aug | The Cabinet Office announces the swearing-in for Tuesday 1 September. The Bank of Zambia quotes the kwacha at K19.0729 per dollar, mid-rate. |
| Thu 27 Aug | Police warn and caution Brian Mundubile and his running mate Makebi Zulu over alleged treason. The Mo Ibrahim Foundation cautions Hichilema against wasting Zambia’s democratic legacy, and church mother bodies call for calm. |
| Fri 28 Aug | ZamStats reports annual inflation of 6.2% for August, down from 6.5% in July, with monthly inflation at 0.2%. The ECZ sets a fresh parliamentary election in Mandevu for 24 September after an attack on the totalling centre. National Heroes Stadium passes its pre-inauguration inspection. |
| Through the week | Kenya signals readiness to buy Zambian maize as Baita Trading seeks up to 10.8 million bags, the Barotse Royal Establishment welcomes the Livingstone to Sesheke road project, and a review of the debt files shows interest payments now take about K15 of every K100 of tax revenue, down from a peak near K70. |
The numbers that moved
| Indicator | Where it stands | What changed |
|---|---|---|
| Annual inflation (August) | 6.2% | Down from 6.5% in July; food price growth slowed |
| Kwacha per US dollar | About K19.07, Bank of Zambia mid-rate | Held a narrow band all week and firmed slightly on Friday |
| Copper, LME three-month | About $14,314 a tonne on 28 August | Eighth consecutive weekly gain as exchange stocks fall |
| Pump prices | Petrol K25.29, diesel K26.86 a litre | Set by the ERB’s August review; the September review falls due now |
| Policy rate | 13.25% | Unchanged since the May cut; next decision on 30 September |
| GDP, first quarter | 7.7% year on year | Copper-led; government expects 6.4% for the full year |
What this means for your pocket
Cheaper food did most of the work on the inflation number, and August’s fuel cuts left pump prices at their lowest this year. Prices are still rising, just more slowly, so the relief shows up in how fast the till moves rather than in the total on the receipt. The next tangible gain for borrowers would come from the Bank of Zambia’s meeting on 30 September: with inflation at 6.2%, a second quarter-point cut from 13.25% is a live possibility, and commercial bank lending rates followed the last one lower.
What this means for business
The declaration of the result and Tuesday’s swearing-in release the decisions that piled up during the election wait, from procurement awards to parastatal payments. Two trading stories deserve attention. Kenyan demand for Zambian maize, with one trader seeking 10.8 million bags, opens an export window for aggregators if the surplus holds. Against that, the bag shortages reported at FRA depots in Mumbwa point to logistics strain on the buying side. Firms carrying dollar obligations through the inauguration will find hedging cheap while the kwacha behaves.
What this means for investors
The macro tailwinds are real: disinflation to 6.2%, first-quarter growth of 7.7%, copper above $14,000 and a government with 160 of 278 Assembly seats that can pass its programme without negotiating. The discount is institutional. A petition window that closed without a hearing and a treason investigation involving the main opposition leader are the kind of entries that keep Zambia’s risk premium higher than its fundamentals suggest it should be. Finance ministry officials want a new IMF programme agreed by year-end, and Managing Director Kristalina Georgieva’s early congratulations pointed to continuity in that relationship.
The week ahead: Sunday 30 August to Friday 4 September
| When | What to watch |
|---|---|
| Sun 30 Aug | MPs-elect report to Parliament Buildings for registration and orientation ahead of the first sitting of the new National Assembly. |
| Tue 1 Sep | Inauguration at National Heroes Stadium. The oath starts a 90-day countdown within which the 2027 Budget must be presented. Watch the address for policy signals and the cabinet list that follows. |
| Turn of the month | The ERB’s monthly fuel price review falls due. With the kwacha steady and global product prices soft, August’s pump prices look set to hold or drift lower. |
| Days after | The first sitting of the new Assembly, at which members are sworn in and elect a Speaker and two deputies. In 2021 the first sitting came three weeks after the vote; a similar interval points to mid-September. |
| All week | Copper takes its cue from factory surveys out of China and the United States, American jobs numbers due Friday, and the tone set on inauguration day. |
Further out: the markers already on the calendar
- 24 September: Mandevu votes again in the parliamentary re-run ordered after the attack on the totalling centre.
- 30 September: Bank of Zambia monetary policy committee. Inflation at 6.2% and first-quarter growth of 7.7% build the case for another cut; the counterweight is kwacha stability through the transition.
- By end November: the 2027 Budget, which must be presented within 90 days of the swearing-in. The late-September tradition shifts later this year.
- By year end: talks on a new IMF programme, which finance ministry officials want concluded before 2027.
- Into October: preparations for the 2026/27 farming season against warnings of an El Niño event, with input delivery and FRA logistics worth watching ahead of planting.
The bottom line
Zambia enters September with cheaper food, a firmer currency and copper above $14,000 a tonne. It also enters the month with a petition window that closed without a hearing and an audit office without a chief. Tuesday answers the political question. The inflation print has already answered the economic one.
Related coverage
- Ten Days That Tested Zambia: Hichilema’s Re-election, Sealed Courts and a Cooling Inflation Rate
- Zambia’s Inflation Eases to 6.2% as Food Price Growth Slows
- From K70 to K15: How Debt Restructuring Changed What Zambia’s Taxes Pay For
- National Heroes Stadium Nears Readiness for Hichilema’s Second Inauguration
- Mandevu to Vote Again: ECZ Sets Fresh Parliamentary Election for 24 September
- Kenya Ready to Buy Zambian Maize as Baita Trading Seeks 10.8 Million Bags
- Zambia’s Turnaround Won the Election. Now It Has to Deliver.
- Copper Nears $14,000 as US Tariff Fears Drive Stockpiling
Related: Is Zambia Ready for Hichilema’s Second Term?, our full assessment of the economy, the inauguration and the international deals waiting on the new term.
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