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ANALYST PREDICTS INFLATION SURGE FOLLOWING INTRODUCTION OF NEW HIGHER DENOMINATION BANKNOTES

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by Conrad Mwango
02.12.2025
Financial Analyst Naylor Kopakopa predicts that Zambia will experience a rise in inflation following the introduction of higher denomination banknotes by the Bank of Zambia.
Mr. Kopakopa says this is based on historical trends, where the introduction of higher notes has consistently led to inflation, as seen in Zambia’s previous introduction of K100 and K50 notes, as well as in Zimbabwe.
Mr. Kopakopa notes that while the underlying reasons for this phenomenon are unclear, the correlation between higher denomination notes and inflation is well-established.
In an interview with Phoenix News, Mr. Kopakopa suggests that the move may be aimed at encouraging individuals to deposit their savings into banks, rather than hoarding cash but has expressed skepticism about the effectiveness of this strategy, citing the tendency for people to find ways to circumvent the system.
The new family of Zambian currency, set to launch on march 31, 2025, includes K500, K200, K100, K50, K20, and K10 denominations.
And Green Party Leader Peter Sinkamba has expressed concerns over the impending Zambian currency change, citing potential inflation, erosion of smaller denominations’ value, and public panic.
Mr. Sinkamba argues this change should have occurred in 2021, as the current timing may create unnecessary distortions, citing past failed attempts to introduce K1000 notes and a costly currency overhaul in the 1980s, which had significant financial implications.
According to Mr. Sinkamba, the new currencies may lead to price hikes, particularly for commodities, as businesses may round up prices to the nearest K500 or K200.
He adds that next year’s elections may influence the decision to revoke the currency change, which he feels has been rushed without adequate planning.

Forget your average influencer! Imagine cruising alongside Thobi Rose, the effervescent South African travel guru, on a sun-drenched voyage along the country’s stunning coastline. This vivacious Zulu queen, known for her infectious laugh and captivating storytelling on her YouTube channel “Thobi Rose,” isn’t just documenting her travels – she’s spearheading a new wave of content creation alongside the South African Ministry of Tourism. Whispers abound of a soon-to-be-released blog post on her “Lived Experiences” platform, where Thobi promises to spill the tea on three unforgettable days aboard the majestic MSC Splendida.

The journey was not just about sailing from one port to another; it was a celebration of shared cultural experiences and meaningful connections forged amidst the beauty of South Africa. The ship, a majestic ode to maritime luxury, housed a dazzling array of restaurants, entertainment venues, and leisure facilities. Crystal chandeliers cast a warm glow over the elegant public spaces, while expansive decks offered panoramic views of the ever-changing seascape. Durban’s vibrant energy pulsed through the first leg of our voyage. But the true magic unfolded as the ship glided towards Cape Town. The sight of the bright lights and the iconic Table Mountain, sent shivers of excitement down my spine. This legendary landmark, a UNESCO World Heritage Site, was my next destination.

 

The transition from MSC Splendida to the bustling city was seamless. Our accommodation for the remainder of the trip was the Southern Sun, a contemporary haven in the heart of Cape Town that welcomed me with open arms and an undeniable sense of luxury. Stepping into the cool, marbled lobby felt like entering a sanctuary of modern elegance and a warmth that resonated with a traveler’s soul. The rooms themselves were a haven of comfort. Lush fabrics in calming earth tones invited relaxation, while expansive windows offered tantalizing glimpses of the city lights below. It was the perfect space to unwind after a day of exploration and sensory overload, a place to let the memories of the day solidify and transform into cherished stories.

No trip to Cape Town is complete without indulging in some retail therapy. The V&A Waterfront, a bustling harbour-side complex, provided the perfect opportunity to explore an array of shops and brands. From local crafts and souvenirs to international fashion labels, there was something for everyone. For the next part of my escapade I kicked up some dust on an exhilarating quad bike adventure on the Atlantis Dunes, traversing scenic trails and challenging myself with adrenaline-pumping manoeuvres.

The following morning bright and early after a restful night, was a visit to the iconic Table Mountain, towering majestically over the city of Cape Town. As we ascended to the summit via the state-of-the-art cable car, vistas of unparalleled beauty unfolded before us. The city spread out below, framed by the sparkling waters of the Atlantic Ocean, while the rugged coastline stretched into the distance—a testament to the timeless power of nature.

Later in the afternoon we visited the luxurious Morgenhof Wine Estate, nestled in the verdant vineyards of Stellenbosch. Surrounded by rows of grapevines heavy with fruit, we were treated to a sensory feast—a journey through the flavour’s and aromas of South African wine. From crisp Sauvignon Blancs to full-bodied Cabernet Sauvignons, each glass told a story of the land from which it came, leaving us with a deeper appreciation for the artistry of winemaking.

 

Continuing our exploration of South Africa’s rich viticultural heritage, we ventured to the Seven Sisters Vineyards, where we were greeted by the inspiring tale of the seven sisters who had overcome adversity to pursue their passion for winemaking. Against the backdrop of the rugged mountains of the Western Cape, we sampled their exquisite wines, each one a testament to the resilience and determination of the human spirit.

After a day of swirling reds and crisp whites at the Stellenbosch vineyards, our laughter-filled group weaved its way through the heart of Cape Town. My destination for the last night in Cape Town: the award-winning Southern Sun hotel.

As fatigue gently nudged me towards slumber, a sense of gratitude washed over me. The day had been a tapestry woven with the rich threads of cultural exchange, breathtaking landscapes, and the intoxicating world of wine. But most importantly, it had been a day of shared experiences, forging friendships that transcended borders.

Curled up in the cozy embrace of the Southern Sun, I drifted off to sleep with the promise of one final adventure – the journey back home to Zambia. But that return wouldn’t be just a flight; it would be a homecoming, carrying with it the indelible mark of South Africa’s beauty, hospitality, and the connections forged on this unforgettable voyage.

The Author

Conrad Mwango

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