Thursday, July 18, 2024

Zambia and UAE Sign Landmark Agreement for $2 Billion Renewable Energy Investment

Share

In a significant move towards sustainable energy, Zambia and the United Arab Emirates (UAE) have signed a Memorandum of Understanding (MoU) and Joint Development Agreement (JDA) to facilitate massive investment in renewable energy in Zambia. The MoU and JDA will see ZESCO, the country’s state-owned electricity company, partner with MASDAR, a key investment funding entity of the UAE, to form a joint venture in developing and deploying large-scale solar projects across the country, estimated at US$2 billion.

Writing about the MOU, President Hakainde Hichilema said, “This MoU and JDA will see ZESCO partner with MASDAR, a key investment funding entity of the United Arab Emirates (UAE), to form a joint venture in developing and deploying large scale solar projects across the country, estimated at US$2 billion. This is not a loan but a capital injection in which the Zambian people, through ZESCO, will be partners in shareholding.”

The projects will be undertaken in a phased manner, starting with the phased installation of 500 megawatts. Once completed, the projects will result in an additional 2000 megawatts of electricity in the country, within the next few years. This significant increase in electricity supply will be a major boost for the country’s economy, as it will result in more accelerated economic development and increased employment opportunities for citizens.

The significance of this project is that, in the last 58 years of Zambia’s independence, the country has only developed 3,500 megawatts of electricity. President Hichilema said, “The historical significance of this project is that, in the last 58 years of our independence, the country only developed 3,500 megawatts of electricity. This remarkable investment shall bring in the much needed 2000 megawatts, within a shorter period of time.”

The President also highlighted the renewed confidence that investors have in the sound leadership of the country, resulting in more players expressing interest to participate in the country’s planned diversified energy mix, which will include solar, wind, and hydro power.

In addition to the MoU and JDA signing, President Hichilema also recently held a meeting with Ali Rashed Alrashdi, the International Holding Company (IHC) Board Chairman, to discuss ways in which citizens involved in small-scale mining can be properly organized and benefit from the country’s mineral resources. The President said, “We are transforming our small or artisanal mining sector from the demeaning situation where they were being labelled illegal miners (jerabos) to an environment where they can obtain licences, assisted with some capital and equipment and provide ready market for them within the vicinity of their operations.”

He emphasized the need for joint ventures as the only way foreign companies can transfer knowledge and skills to citizens, enhance job creation, and exploitation of opportunities. He also mentioned the need for mineral processing plants and value addition facilities around small-scale mining to avoid a situation where investors extract soil and export it in raw form.

“We look forward to the actualization of more of such engagements and projects,” said President Hichilema. The signing of this MoU and JDA, as well as the discussion on small-scale mining, is a clear indication of the government’s commitment to promoting sustainable energy and economic development in the country.

25 COMMENTS

  1. New Dawn Government never learnt anything from Lazy Lungu’s trips and MOUs ….everywhere he went he signed them nothing materialised from them he just left his nice handwriting on the papers.

    3
    3
  2. Hahahaha let us wait for the outcomes. Can we be told when the benefit of these useless trips materialises. Hh is getting billions from these days . You Zambians didn’t Learn from privatisation. This boy is crooked.

    3
    9
  3. Ok, silly question time…how do you get excited on 2 billion investment from a trillion dollar economy when our own government boasted of creating a road at the same price? In other words, why is it so difficult for our government to raise this kind of money for such projects? why is our government not investing in assets locally and abroad?

    4
    7
    • Zambia has debt which is failing to pay back, Signing MOU for big projects is the only sustainable was. Zesco has $2.7billion debt why it has that very few can answer

    • I’ll ask the question in another way. How are we failing to pay back these small debts when we are sitting on treasure worth trillions? Why is it that our politicians are quick to tell us how much we owe but have no idea on how much we are worth? Do we seriously think that begging is the answer to our problems?

  4. Zesco is broke and with massive debts.This means Zambians will be at the mercy of UAE’s Masdar investors who raise tariffs to maximize returns.

    11
    1
  5. “This MoU and JDA will see ZESCO partner with MASDAR, a key investment funding entity of the United Arab Emirates (UAE), to form a joint venture in developing and deploying large scale solar projects across the country, estimated at US$2 billion. This is not a loan but a capital injection in which the Zambian people, through ZESCO, will be partners in shareholding.”
    Everything with ZESCO is partnership even simple solar project that just needs consultants …all the revenue they generate goes to paying debt…you increase tarriffs for cusstomers they just increase debt and borrowing.

    1
    1
  6. Still in campaign mode……talk is cheap….20 years down the line nothing will happen….Africa we are good at talking and signing MOUs fooling gullible Zambians…that’s the problem when you lie too much HH is now operating under pressure…his lies have caught up with him…,,
    Kagame was In Livingstone and he signed a dozen MOUs….zero acuatualization

  7. It will be interesting to see whether such huge investments can be made without a comprehensive due diligence being undertaken by the investors and we all know that that takes years, many years. It also looks like these days, MoUs have become firm agreements b4 we even know what shape the SPV will take. It was quite simple to sell entities under privatization but this is a different ball game with very few variables. Remember, we also have the Angola MoU (agreement) in the wings, well done UPND.

  8. Last year they went for Dubai expo…..it turns out it was just a shopping spree….they signed MOUs….blah blah blah blah all talk no substance….if we need to develop Zambia we seriously need a practical leader not just a leader busy building castles in the air whilst Zambians are starving

    7
    1
  9. @Mlevi Kachasu
    Zambias electricity tarrifs of around 5 cents per Kwh are just too low and unsustainable. ZESCO is basically subsidizing the electricity when its dead broke.
    Look at the tarrifs of countries that generate power using the Zambezi river
    Zimbabwe – 11 cents per Kwh
    Mozambique – 10.5 cents Kwh
    Its even better for ZESCO to export power to Nambia which has a tarrif of 11.5 cents per Kwh than to supply power domestically.
    This needs to be addressed urgently.

    • That explains why ZESCO is broke because they have been subsidizing consumers including the mines who consume 70% of electricity in Zambia. In fact it is good that the New Dawn Government has undertaken to revise tariffs to cost reflective levels but in staggered manner over a period of 5 years! THAT AND PROPER MANAGERS ARE THE CURES TO ZESCO’s POOR PROFITABILITY,NOT PRIVATIZATION!!

  10. Poor reading culture has led to a lot of confusion in the understanding of the King’s English in Zambia. People forget this is a party that has only been in power for 17 months! That might not be understood by the illiterate KZ – 17 months is 1 year and 5 months with UPND scoring on all major fronts. PF will soon be UPF Ununited Patriotic Front and then straight after be NPF and that my friend stands for No Patriotic Front. Long Live HH and UPND. Ba koswe mu mimpoto namu mpoto zoona ayi – mwagunwa te!

    3
    2
  11. Poor reading culture has led to a lot of confusion in the understanding of the King’s English in Zambia. People forget this is a party that has only been in power for 17 months! That might not be understood by the illiterate KZ – 17 months is 1 year and 5 months with UPND scoring on all major fronts. PF will soon be UPF Ununited Patriotic Front and then straight after be NPF and that my friend stands for No Patriotic Front. Long Live HH and UPND. Ba koswe mu mimpoto namu mpoto zoona ayi – mwagunwa te! LUSAKA TIMES SAYS – say that again girl!!

  12. HH is busy building castles in the air and praise are jumping up and down…,,come 2026 it will just be blah blah blah….What happened the bus assembly company that was allegedly “launched” in Kabwe by Punka professor Chirwa….we told you it was just hot air…HH is just trying hard to divert attention and majority of his praise singers don’t even know what MOU is

  13. All those political semantics mean nothing to a common Zambian all what people want are cheap prices of mealiemeal reduced prices of fuel all those signitures are futile, if prices of essentail commodities remain the same high .
    A poor Zambian has not seen anything yet done by the promising man in state house since they don’t have enough food to feed their families. Food on the table is what determines a good president and when electricity connection fees are low zambians will say you are a good leader .
    The abscence of these basic commodities Zambians are your enemies

  14. “Within the next few years” that is Zambian reporting for you. This is why we vote for liars. Anything this man talks about he compares it with the past. In 58 years his father was general manager for Zambia railways until Kk fired him. Time has past technology has changed. Hakainde please boast only when you fulfil your promises. This is why you claim Kazungula bridge.

  15. Tshisekedi in Congo should take a leaf and help jis people in Eastern Congo who are suffering and being exploited for their mineral wealth by unscrupulous mafia mine owners. Neighbouring Rwanda has now become the second largest exporter of Coltan and suddenly Rwanda has gold out of the blue! African leaders in the AU are like neighbours who do nothing while their neighbour is being robbed in broad daylight.

  16. With the sign up of the MOU. praying the project takes place as Zambias loadshadding is hindering a lot of businesses especially the current startups without enough capital to purchase other sources of power

Comments are closed.

Read more

Local News

Discover more from Lusaka Times-Zambia's Leading Online News Site - LusakaTimes.com

Subscribe now to keep reading and get access to the full archive.

Continue reading