A vibrant energy sector crucial for Zambia’s economic growth

By Pelekelo Liswaniso


DESPITE an economic boom owing to revival of mining activities and a rise in global copper prices, the majority of Zambians still live in abject poverty.
The benefits of the economic boom still elude the majority of Zambians as poverty is still deep and widespread.

Over 70 per cent of the population is poor and has inadequate access to healthcare and education, nutritious food, clean water, clothing and housing, according to the Rural Poverty Portal of the International Fund for Agricultural Development (IFAD).

Unemployment is high while diseases are widespread and hunger looms in most households.
And if Zambia is to achieve the Millennium Development Goals (MDGs) - to halve poverty by 2015 – drastic measures must be taken at all levels and in all areas of society.

The need for intervention is great. It’s probably this realisation that prompted the Zambian government to formulate an anti-poverty strategy, whose implementation is, however, heavily supported by other countries and donor agencies.

When he assumed the Chairmanship of the Southern African Development community (SADC) earrly this year, President Mwanawasa, he would concentrate on the development of infrastructure because it was a pre-requisite to economic development.
Mr. Mwanawasa said the region required a good road network, rail transport, telecommunications and energy among other things.

The Fifth National Development Plan (2006-2010)-a comprehensive five –year blueprint that will guide Zambia’s development process- shows that Zambia is richly endowed with a range of indigenous energy sources, particularly woodlands and forests, hydropower, coal and renewable sources of energy.

Woodland and forests cover about 66 per cent of the total land area and provide about 70 per cent of the country’s energy requirements.

The country’s hydropower resource potential stands at an estimated 6,000 Mega Watts (MW) while the installed capacity is a mere 1,876 MW.

Hydro-electric plants represent 99 per cent of electricity production in the country with the major sources being Kafue Gorge, Kariba North Bank and Victoria Falls Power Stations – all in the southern part of the country.

Kariba and Victoria Falls power stations are on the Zambezi River, shared by seven other riparian states in the SADC region.

The country’s electricity is predominantly consumed by the mines, accounting for 68 per cent while households only use 19 per cent of the total.

The Swedish International Development Agency (SIDA) says vigorous efforts are needed to remedy the energy situation in Zambia because only 20 per cent of the population has access to electricity.

Proven coal reserves are estimated at 30 million tonnes with several hundred million tonnes of probable reserves.

Currently, a coal mine is in operation at Maamba in the Southern Province with a design output of 1 million tonnes per annum.

In recent years, the contribution of coal to total energy consumption has declined to barely two per cent due to production constraints.

Established infrastructure for petroleum import and processing include the 1,710 kilometre TAZAMA Pipeline, the Indeni Petroleum Refinery and the Ndola Fuel Terminal. Indeni is designed to process around 1 million tonnes of spiked crude per annum.

The main distributor of electricity is the Zambia Electricity Supply Corporation (ZESCO), a parastatal, while the Copperbelt Energy Corporation (CEC) is a relatively new investor in the Zambian energy sector and plays a critical role in the mining industry.

The Zambian power system is interconnected at a high voltage with Zimbabwe and the Democratic Republic of Congo and at a lower voltage to the north of Botswana and Namibia. These countries form the large export market.

The government appreciates that the availability and accessibility of modern energy services result in sustained economic growth, environmental protection and poverty reduction.

Access to energy services is a prerequisite to the achievement of the MDGs and poverty can be reduced by increasing access to energy services because every economic and social sector needs adequate, reliable and affordable energy input to grow.

Furthermore, increasing accessibility of the majority of the population to modern energy services and efficient devices would lead to improvement of living conditions for Zambians in rural and urban areas.

Low income households, for example, tend to rely on basic forms of energy such as firewood and charcoal while high income households use higher forms of energy such as electricity.

The use of low forms of energy such as wood, dung, and other biomass lead to indoor air pollution, which is a major by-product of traditional energy sources, further diminishing the quality of life of poor households.

Such poor patterns of energy use result in adverse effects on nutrition, health, productivity, and the environment. Instead, programmes should focus directly on creating opportunities for poor people to improve their energy services.

Access to electricity can improve people’s lives dramatically and can subsequently make companies grow and work effectively.

Currently, only 20 percent of Zambia’s population has access to electricity. In rural areas, a paltry two percent has access to electricity.

Former Energy and Water Development Minister Felix Mutati, now at Commerce and Industry, has repeatedly said the present use and production of energy must be changed, partly to meet the needs of a greater number of people for electricity and energy for their heating and cooking, and partly to reduce the destruction of the environment.

Energy consumption patterns must also be changed. Charcoal burning at the moment is the order of the day leaving a trail of destruction in the forests.

When he launched the Electricity Consumer Charter in Lusaka in April this year, Mr. Mutati said electricity faults should also be rectified promptly and consumers notified about any power interruptions.

Load-shedding of electricity should also be done in an equitable and transparent manner and an atmosphere for complaints should be created in order to inspire confidence. Zesco, Energy Regulation Board (ERB) and the consumers should work closely together and create harmony in the energy sector, Mr. Mutati said.

The ERB, he said, should ensure areas of inefficiency were addressed and ensure it performed its arbitration role in cases of disputes between consumers and the utility company in an effective manner).

In order to avert the looming deficit in the generation capacity of electricity which is focused to occur between 2007 and 2008 as a result of increased economic activities in the country, government has embarked on the expansion of the Kariba North- Bank Power Station.

In addition, progress has been made in the preparatory works for the construction of Itezhi-tezhi and Kafue Gorge hydro-power projects.

Government is also exploring construction of mini-hydro power stations in potential areas of Northern, Luapula, Copperbelt and North-Western provinces where natural water falls are available.

Solar energy is another form of energy being promoted by government. To this effect some of the chiefs’ palaces, schools and health centres around the country have already benefited from the installation of solar equipment. Some rural districts have also been connected to the national grid.

In its planning process, government is also integrating the management of the energy sector by ensuring that various players that use water resources are considered when implementing the energy policy, and thereby, essentially translating the ideals of Integrated Water Resources Management (IWRM) into practice.