Education Deputy Minister David Mabumba (l) receives an award from USAID Zambia Education Office Chief Iris Young (r) as recognition for a cordial relationship between the ministry and USAID Zambia, during the celebration of International Literacy Day at Mulambwa Primary School in Mongu
Energy Minister David Mabumba
Energy Minister David Mabumba has charged that in the year 2017, electricity tariffs would be revised in order to make them cost reflective in line with the policy shifts as outlined in the National Budget.

Speaking during a press briefing in his office yesterday, Mr Mabumba appealed to Zambians to bear with the government that as the nation was going through power deficit, government in 2017 would be working on developing the hydro, solar, coal and geothermal potential.

Mr Mabumba said currently the power tariffs in Zambia were not economically attractive.

“…and as long as we don’t deal with structures of our tariffs in this country, it would be difficult for Zambia to attract the private sector,” Mr Mabumba said.

Mr Mabumba said in order for government to finance a K3.5 billion dollar Bakota power project, it needed to have cost reflective tariffs.

He said if the tariffs were not attractive, the banks would not be willing to finance the energy projects.

Mr Mabumba said government was spending about US$40 million dollars per month from electricity imported from Zimbabwe, an equivalent of almost U$480 million per year.

He said Zambia had been importing 300 megawatts per day from Mozambique.

Meanwhile, Mr Mabumba said government would implement the policy shift of delinking itself from the oil procurement process and leave the procurement of petroleum products to the private sector.

On fuel prices, Mr Mabumba said despite the policy shift of delinking itself from oil procurement, the Energy Regulations Board would continue to determine the oil pump price.

“Governments in the SADC region even in East Africa do not participate in the procurement of fuel because they have realized that the private sectors are the drivers of job creation and they have decided to empower the private sector to import fuel on behalf of their respective government,” Mr Mambumba said.

Mr Mabumba said in 2017 government would begin a gradual process to build capacity in the private sector to participate in the procurement of petroleum product in the country.

He said the Ministry of Energy would only be providing policy directions and regulations by creating an enabling environment for all the OMCs to have equal participation.

Mr Mabumba said the government through the Energy Regulations Board would still return the uniform pump price across the country in order to protect the Zambian people.

He however stated that in the oil procurement process, government would have to protect the interest of Indeni and TAZAMA oil pipelines.

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26 COMMENTS

  1. “Mr Mabumba said in order for government to finance a K3.5 billion dollar Bakota power project, it needed to have cost reflective tariffs.”

    Wait a moment, but weren’t we told by the Great Leader that Zambia will not be venturing into new power projects? That we’ll be importing power from South Africa?

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    • Mr Chosen one even if he said that doesn’t mean its final nor did he ban developing power stations. Moreover as a nation we still need to move on and develop dont blow the statement and dwell on it everytime to gain political ground or whatever you want to achieve. The fact is we need power stations full stop.

      THANK YOU.

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    • The statement from Lungu on power from SA was a load of nonsense and he must have been drunk when he said it. Or just too dull to know what he was talking about.

      SA IMPORTS most of the power from Cahorra Bassa dam on the Zambezi river in Mozambique! How can a country that IMPORTS electricity change to EXPORTING it to another third country? Unless there is CORRUPTION involved!

      Does not make any sense. Incompetence or fraud or both!

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    • @Bang Bang, which regional integration? You suspend development of your own power plants, opting to import!! Is that your regional integration???

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  2. Can someone make me understand,”our tariffs in Zambia are not economically attractive”how can they be attractive when a company with over 52thousand workers are getting 1000units every month at 50ngwee.

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    • Yeah! Damn right: 5,200 workers multiplied by 1,000 units is 52 megawatts free of charge per month compared to 300 megawatts from Mozambique at US$ 40 million per month.

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    • Not just that 52000 workers with extra ordinary benefits that do not much input. zesco needs to be privatised. Such of revenue to be collected won’t even go towards power generation projects.

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  3. No3 you are a wise man, highly technical. who is subsidizing power for ZESCO workers? what about our ministers do they pay? How much per kw do our ministers pay for electricity on their farms. Anyway the president said Zambia will import from South Africa. Mr Zuma invited him to discuss that and Zambia agreed. Why do we want investors in the power sector?

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    • All Zesco worker should have their electricity SHUT OFF until there is no more LOAD SHEDDING in Zambia!

      That would give them a real incentive to get off their fat overpaid asses and get to work.

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  4. That’s the only thing these pamafi knows, to adjust or revising prices upwards everyday. Water tariffs have gone up and now power, next is fuel. You thought by dancing dununa reverse you were praising your great kaponya leader. Wait and see how things unfold going forward. These politicians don’t even feel the agony of paying these astronomical fees mwanya muzania manzi kkkkkkk.

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  5. The Hon Minister is lamenting about costly power imports. Not from within in the region, I suppose? Or has been misquoted? I’m taken aback because the great leader and his boss had already lectured that it was cheaper to import under the so called regional integration?

    Where are these inconsistencies taking us, my foot?

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  6. The mighty great leader said we don’t need to build power stations when south Africa has excess capacity. Then why are we hearing about this $3.5billion to build new power stations?

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    • Clueless clowns falling over their own feet! How much more obvious can it be that these ID!OTS have no idea how to manage a countries economy?

      Suffer Zambians. And the one thing you can be absolutely sure of is that this is only the beginning. Things are going to get much, much worse!

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  7. Mmmmm bafikala Baya sana nabo bafikala a mazambians baliba ndwi kwati fipuba,mwanya lwenu bakula lundafye opobafwaila kaili them they are enjoying the government incentives, so when they hike join me in demonstrations

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  8. Hon Mabumba borrow money and buy solar panels that can power refrigerators and give them as loans to civil servants. Panels will make you stop importing power from Mozambique sir until we start producing enuf lower

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  9. Zambia is currently ran by a bunch of morons, whose focus is absolutely unknown. They talk and do things like dreamers, everything is try and error, the only thing that they know best is to steal from the already suffering ordinary citizens. Look at the tax base for Zambia. Actually, Zambians pay more tax than any other country in the world and whilst these countries still want to reduce the tax base further down, Zambia has opted to increase the tax base even more. By the way, what was the purpose of this country fighting for independence because it would have been better Zambia remained colonised up to now and I hope people’ s lives could have been much better than the worse situation they are in now. Everything is a circus.

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  10. Be very careful with your hikes. Careful in the sense that you must take into consideration the weak in our economy. Not all use the power to generate more money but just mare lighting. One of the consequences of sharp hike would be turning the country into a desert and that is not good thing generally. What about looking at the ZESCO structure and analyse whether all those directors are necessary and contributing effectively. You might end up Not requiring to hike charges.

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  11. Please, please don’t compare with other countries for expenses and costs, go further and tell us how much civil servants earn in Kenya, Botswana, Namibia, South Africa! That way you will convince that electricity tariffs are currently not competitive in the region! Right now very few people in Zambia, and in employment, are able to buy electricity from their earnings through out the month! For part of the month the workers have to dubiously or undubiousy earn the money to buy power! No wonder the many cases of theft in Auditor General’s Annual reports! PF voting out themselves fast!

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