Former Finance Minister Felix Mutati has called on Authorities to urgently resolve the impasse between power utility company Zesco and the Copperbelt Energy Corporation.
Mr Mutati says the impasse will not only hurt the revenues of Zesco but will also compromise the ability of the company to be able to raise financing that are critical for Zesco’s operations going forward.
He noted that current lenders into Zesco are also anxious to see that there is a credible way forward on the matter while CEC may suffer job losses.
Mr Mutati said apart from threatening the security of supply to the mining sector, Zambia may erode broader investor confidence in the economy.
He said for the mining sector, the anxiety may create uncertainty in the investment front affecting copper production which affects the exchange rate.
Mr Mutati has urged the Minister of Energy Mathew Nkhuwa to put in place interim power supply agreements as the impasse is being resolved adding that government should also complete the cost of service study.
He said the Cost of Service study will define the margins that players in the energy sector will be able to harvest and anchor the security of supply and inject investor confidence for players in the mining sector.
Mr Mutati said Zambia already has a lot of economic challenges and cannot add more challenges that create anxiety among investors saying this will be costly to the nation.