Melo Media | Monday, 6 November, 2023
Despite public disapproval, Energy Expert Boniface Zulu predicts that there will be an inevitable increase in electricity tariffs. According to Zulu, this increase is necessary for Zambia to achieve its economic goals, attract private green finance for renewable energy projects, and expand its generation capacity.
Sonny Zulu, the Chief Executive Officer of Standard Chartered Bank, made this statement at the Zambia International Mining and Energy Conference-ZIMEC in Kitwe. Zulu believes that the low electricity tariffs will have a negative impact on the energy sector and hinder Zambia’s goal of becoming a net exporter of power in the region.
This increase is seen as necessary, although it may not be well-received by the citizens of Zambia. The country is already facing a high cost of living due to factors such as the exchange rate and inflation.
Mr. Zulu has called on the government to reassess energy policies and streamline procedures, as well as provide significant incentives to private entities looking to invest in green energy in the country. Meanwhile, ZESCO, the national power utility, plans to significantly increase its generation capacity from 3700 to 10,000 megawatts by 2031.
This is due to the fact that Zambia currently has the lowest tariffs within the SADC region, which makes the country unattractive for investment. In order to achieve targets such as an annual copper production of 3 million metric tons, increasing tariffs is seen as the only solution.
