NANCY MWAPE, Lusaka
STANBIC Bank Zambia says Government’s move to have cost-reflective electricity tariffs will provide energy security and enable the country to become a net exporter of power in the near future.
The bank’s head of investment Chungu Kaunda said cost-reflective electricity tariffs are crucial for continued viability of the power sector, attraction of fresh capital and independent power producers.
This is contained in a statement issued at the 19th Congress of the Power Utilities Association of Africa taking place in Livingstone under the theme ‘Promoting emerging economies in Africa’.
“This will not only provide energy security for the country, but based on the country’s strategic position and abundance of hydro and solar resources, this will enable it to become a net exporter of power in the near future,” Mr Kaunda said.
Mr Kaunda said Zambia’s reliance on hydro, with limited supply of other energy sources, has, in the current drought season, seen the country importing electricity from South Africa and Mozambique.
He said diversifying Zambia’s energy mix by harnessing the country’s abundant solar and coal resources through the leveraging of foreign capital, private ownership, rational pricing and user-pay fundamentals would spread the risk and meet the energy needs.
“This would also prevent the Government from being solely responsible for supplying and paying for energy in times of shortage,” he said.
At the same event, Standard Bank Group head of power Rentia van Tonder said the bank trading as Stanbic Bank in Zambia is pleased to be associated with the sustainable energy development.
Mr Tonder said the rapid evolution of renewable technology provides African governments with choices and opportunities for conceiving, developing and sustaining energy generation and distribution networks.