International financial institution the World Bank is supporting Zambia’s electricity sector through a $700 million program launched in March 2024. The National Energy Advancement and Transformation Program aims to upgrade energy infrastructure in line the government’s target to achieve a 10% GDP growth by 2030 and bolster employment opportunities.
In line with this target, public and private sector entities are implementing strategic energy infrastructure projects to support the diverse sectors of the Zambian economy. These investments are poised to accelerate economic growth while supporting the country’s efforts to achieve universal access to electricity by 2030.
Power Investments Fuel Mining Activities
In the mining sector, Copperbelt Energy Corporation – a company that supplies power to mining operations – sold a 36.34% stake to Norway’s Norfund in January 2024 to raise $145 million to fund Zambian power projects. Given that the mining industry contributes 72% of Zambia’s export earnings and 44% of government revenues, ensuring a sustainable power supply to this sector is paramount for maximizing its value while driving GDP growth.
Resilient power supply enables Zambia – which boasts the world’s 6th largest copper reserves – to capitalize on the growing demand for copper globally by increasing its production to three million metric tons in the next ten years. Mining projects such as International Resources Holding’s Mopani Copper Mine expansion and KoBold Metals’ Konkola West Copper Project depend on a stable power network to maximize their contribution to the growth of the Zambian economy.
Energy Security Drives Agriculture Production
In the agriculture sector, Zambia is collaborating with international organizations – including the Food and Agriculture Organization of the United Nations and the Czech Development Agency – to enhance energy access in agriculture through the adoption of bioenergy and solar energy solutions. With agriculture contributing 3.4% to Zambia’s GDP and employing 59% of the country’s workforce, improved energy supply is pivotal for unlocking the sector’s full potential and fostering economic expansion. The Luapala Biomass Energy Project in Luapala province and the 32 MW Makeni Biomass Power Plant contribute to power resilience and increased productivity for Zambian farmers.
Power Sector Expansion Sparks Investment Influx
Efforts by Zambia to improve energy infrastructure not only supports the operations and productivity of sectors like manufacturing and education, but enhances the country’s attractiveness for foreign direct investment. Israeli multinational energy firm Gigawatt Global signed an agreement to inject $100 million towards the development of a 71 MW solar power plant in Zambia in August 2023. The country is also developing a $2 billion solar power project pipeline – with the potential to increase Zambia’s power generation by over 50% – in partnership with the United Arab Emirates.
