Zambia Enhances Energy Infrastructure as Economy Falters

The Zambian government announced its intention of adding 420 MW of electricity in 2016 as grid projects contribute to development, according to Reuters. The new energy target entails generating 300 MW from a new coal plant, while the remaining 120 MW will derive from a hydropower facility.

Zambia has suffered a significant water shortage stemming from a drought, hampering output from hydroelectric plants. Officials remain dedicated to hydroelectricity, however, which could add 3,000 MW of energy to the national grid by 2024.

The Zambian government announced its intention of adding 420 MW of electricity in 2016 as grid projects contribute to development, according to Reuters. The new energy target entails generating 300 MW from a new coal plant, while the remaining 120 MW will derive from a hydropower facility.

Zambia has suffered a significant water shortage stemming from a drought, hampering output from hydroelectric plants. Officials remain dedicated to hydroelectricity, however, which could add 3,000 MW of energy to the national grid by 2024.

Many African countries are plagued with power disruptions, but the Zambian government has made energy security a top priority. Policymakers are also looking for investors to add 200 MW of thermal energy and 250 MW of solar power.

Development Director Patrick Chisanga stated that leaders are diversifying Zambia’s energy portfolio to avoid an overreliance on hydropower in the future. Currently, hydroelectricity is the most valuable form of energy in the country.

In addition to new projects, the state also plans to upgrade existing facilities. Zambia is also in the business of exporting some of its energy output, as Zimbabwe intends to import up to 100 MW of energy from a Zambian private firm in 2016, notes Lusaka Times.

With that, many rural and urban Zambians remain without modern electricity, relying on wood and other primitive energy sources to survive, but the government is doing more to extend capacity to those who need it.

Economic Weaknesses

While leaders diversify the energy sector, the overall economy needs to generate greater income streams from different sectors. Zambia is a commodity-based nation, and it has been susceptible to price fluctuations on the world markets, especially in regards to copper. Copper was Zambia’s primary income source during its early years, but has invested deeper into the commodities sector.

The country is rich in such natural resources as gemstones, copper, gold, silver, and iron ore. The Southern African country’s natural wealth led to a rich extraction industry, until companies ran into various roadblocks in the form of falling commodity prices and higher production costs.

Additionally, Zambia’s manufacturing base is far behind when compared to other African economies, and this is due to such factors as unnecessary state intervention and wrong-headed investment strategies. Manufacturers have come a long way, but the sector is not viable enough to compete in a world market.

The Way Forward

Officials are on the right track by enhancing the energy sector, but they face additional hurdles, such as a higher budget deficit, the Chinese economic slowdown, and waning agricultural production.

Authorities have commenced talks with the International Monetary Fund to find useful ways of strengthening the economy. One of the most pressing issues at hand is the lack of energy production, and while officials are issuing the necessary structural reforms, these measures will take time, a commodity that Zambia does not have at the moment.