Finance and National Planning Minister, Dr. Situmbeko Musokotwane, has urged the Zambian public to support Zesco’s proposed electricity tariff increase to ensure the utility company has sufficient resources to import power. Speaking during the Deloitte 2025 Budget Review meeting in Lusaka, Dr. Musokotwane emphasized that it is preferable for the country to have higher-priced electricity than to endure ongoing power shortages, which are currently affecting the nation.
The call for a tariff hike comes as Zambia grapples with a significant energy deficit, exacerbated by an aging energy infrastructure and challenges in generating sufficient power to meet national demand. Dr. Musokotwane noted that increasing electricity tariffs would allow Zesco to generate the revenue needed to import power and stabilize supply, thus mitigating the impact of the energy crisis on both households and businesses.
Zesco’s Head of Business Development, Fitzpatrick Kapepe, reiterated the company’s position during the meeting, revealing that Zesco has resubmitted its energy tariff hike proposal to the Energy Regulation Board (ERB) for approval. Kapepe stressed the importance of public support for the increase, highlighting that without a tariff adjustment, Zesco would continue to struggle to provide reliable electricity, further straining the country’s economy.
In a related discussion, Deloitte Consultant Dr. Patrick Chileshe raised concerns about Zambia’s economic outlook, suggesting that the government’s ambitious target of 6.6 percent economic growth in the 2025 national budget may be difficult to achieve. Dr. Chileshe pointed out that persistent economic challenges such as the ongoing energy deficit and the depreciation of the kwacha are likely to continue into 2025, hindering efforts to reach the projected growth rate.
Dr. Chileshe’s remarks reflect broader concerns about the sustainability of Zambia’s economic growth in light of the current structural issues. The energy crisis, in particular, remains a key obstacle, with frequent power outages disrupting industries and economic activities across various sectors. Moreover, the depreciation of the kwacha has further weakened the country’s purchasing power, complicating efforts to import essential goods, including energy.
The call for an electricity tariff increase has sparked debate among stakeholders, with some advocating for the hike as a necessary step to address the energy crisis, while others worry about the potential impact on the cost of living. As the ERB considers Zesco’s application, the public will be watching closely to see how the proposed increase will affect both the electricity supply and the broader economic landscape.
This discussion underscores the delicate balance Zambia faces between addressing immediate energy needs and managing the long-term economic implications of higher electricity costs. The outcome of the tariff application and the government’s subsequent policies will play a critical role in shaping the country’s economic trajectory in the coming years.
By Prudence Chota