- Zambia’s power utility, Zesco Limited, will be importing an additional 40MW from Mozambique’s state-owned energy firm, Mozambique Electricity (EDM).
- Zambia currently imports 50MW from Mozambique.
Victor Mapani, managing director of Zesco, hailed the amended agreement as a testament to the robust partnership between the two utilities and their shared commitment to stabilizing and growing Zambia’s economy.
“By security an additional power supply, we are taking significant steps toward mitigating the current power challenges and ensuring that our nation’s critical sectors remain operational and productive,” he said in a statement released after a signing ceremony held in Lusaka, the Zambian capital.
Related news: ZESCO has unsustainable debt of US$3.5 billion
The power supply amendment is a key component of Zesco’s comprehensive approach to managing the current electricity situation, Mapani said, adding that the two utilities are engaged in further discussions regarding the possibility of additional power supply to alleviate the power deficit challenges Zambia is facing.
Zambia currently faces an electricity deficit of around 500MW and in addition to importing power, they are also rationing electricity as a devastating drought looks set to affect hydropower generation, the country’s main source of power.
Zambia previously understated their debt and defaulted three years ago on their debt to the EU. They are trying to rework their debt under the G20 Common Framework, a programme designed to ensure swift and smooth debt overhauls for low-income nations. But this initiative recently collapsed. Read more
Author: Bryan Groenendaal
