Bank of Zambia (BoZ) Governor, Caleb Fundanga has supported the proposal by the Zambia Electricity Supply Corporation (ZESCO) to increase electricity tariffs to up to 66 per cent by next month.
Dr. Fundanga said for the energy and electricity sector to attract significant investment, there was need to raise tariffs.
He said increasing tariffs would allow the expansion of electricity generation in the country, as it would attract private investment.
He explained that the proposal to increase tariffs by 66 per cent was one step towards exploiting the vast potential that Zambia has in electricity generation and make the sector profitable.
Dr. Fundanga further said, once Zambia increases electricity generation, she would export to South Africa, Namibia, Botswana and East Africa which have serious electricity deficits.
“If we do not increase the electricity tariffs, then forget about private investment in this sector,” he said.