Africa-Press – Zambia. FINANCE and National Planning minister Situmbeko Musokotwane says despite experiencing load shedding, Zambia is being recognised across the world as one of the leading reformers in the energy sector.
Presenting the 2026 National Budget in Parliament on Friday, Dr Musokotwane said despite the serious power shortages caused by the 2024 drought, the country’s reforms have attracted regional and international recognition.
“Today, Zambia is considered by our neighbours as one of the leading performers in the energy sector. The coming onboard of the private sector is positive to our local market because it completes the efforts of existing players like Zesco,” he explained.
“The importance of the private sector is that those with cash, they buy that electricity and sell it to the mines, sometimes there’s electricity in the region, but we are not able to acquire it. Because Zesco must put money upfront and it does not have that money, what happens, those with cash, private companies buy and sell it to Zesco. The reforms in the energy sector are very important.”
The minister explained that the country’s current electricity deficit was a result of underinvestment in the sector dating back to independence, compounded by reduced water levels in hydro dams.
He noted that even if water availability had remained steady, the installed generation capacity would still not be enough to meet the growing demand from households and the mining industry.
Dr Musokotwane said the UPND administration had in the past four years implemented key reforms to address the challenges.
These included diversifying the energy mix, improving the regulatory framework, adjusting tariff structures and opening the market to private sector participation.
He stated that the entry of private players was critical as it complemented State utility, Zesco, and provided alternatives when the company faced constraints.
“Government has created an environment that enables the private sector to be private players in the enegy sector, from generation including exporting and importing,” stated Dr Musokotwane.
“In the past, Zesco imported electricity from Mozambique but failed to pay, which damaged its credibility. Today, private companies with cash can import electricity and supply it to mines or even Zesco itself.”
For More News And Analysis About Zambia Follow Africa-Press
