Hichilema Switches on Zambia’s Power Ecosystem, Lauds GreenCo’s Role

At a well-orchestrated Energy Forum for Africa Conference at the Mulungushi International Conference Centre themed, “Investment opportunities in the energy sector in Zambia and Africa,” President Hakainde Hichilema delivered a passionate inaugural speech. This distinguished conference, comprising captains of the energy industry, financiers, independent power producers and other stakeholders was organised by Ms. Hope Chanda, Founder & CEO of Mimshach Engineering, in partnership with Zambia’s Ministry of Energy.

Zambia currently faces an energy deficit of over 900MW, necessitating energy supplements from alternative power generators and regional power imports, albeit at a higher cost. The El Niño-induced drought has had a multi-pronged impact on the Zambian economy, disrupting energy, food and water security. In acknowledging the adverse impact of the drought and the power deficit on the business environment, President Hichilema echoed, “we shouldn’t be loading shedding these small businesses in welding services, restaurants and barber shops.” He emphasised the importance of wholistic approaches in dealing with the crisis, calling for immediate, medium-term, and long-term solutions to plug the deficit with environmental sustainability goals.

The President underscored government’s willingness to promptly engage with stakeholders in addressing persisting hurdles in current energy reforms. Reinforcing the administration’s commitment, he stated, “This UPND New Dawn government does not need motivation to do what it needs to do to support this agenda.” The president urged the private sector to expedite the deployment of energy projects, adding that his team is ready to handle any hurdles that my still be present in the reforms.

President Hichilema spotlighted reforms implemented by his government to attract capital for energy investments. These reforms include the legal and regulatory reforms to boost investment appetite such as implementing open access policies and introducing of the net-metering systems for rooftop solar. Additionally, he emphasised how reducing bureaucracy around investments through light regulation and tariff-blending could balance costs, promote equity in energy consumption and attract sufficient capital for energy investments.

President Hichilema specifically praised GreenCo Power’s efforts in the energy sector, noting that government is aligned with their agenda. He referenced early meetings with GreenCo representatives at State House, where the administration committed to reforms but expressed dissatisfaction with the slow pace of implementing energy projects in the sector. He further urged the private sector, including entities like GreenCo, to expedite the implementation of agreed-upon resolutions.

President Hichilema’s administration has ambitious targets of unlocking the country’s ten thousand megawatts of generation capacity for driving economic growth, aiming to increase copper production to three million tones and boost maize production to ten million tonnes. To achieve this, regional power pools including the Southern African power pool (SAPP), Zambia-Tanzania Interconnector, and Zambia-Congo interconnectors are crucial in optimising power dynamics across the regions through risk management and diversification via multiple buyer models, essential in achieving the administration growth objectives.

The president urged Zambian citizens including those in the diaspora, to invest in energy generating ventures. With representatives from Zambia’s top banks present, he encouraged the banks to create products supporting indigenous Zambians in this endeavour.

In ending, the president challenged the conference attendees to provide practical solutions, including off-grid energy options for remote clinics and communities. He expects tangible outcomes from the forum, and pledged to monitor progress on deliverables in the coming weeks and months.