LEAD Debt savings to power Zambia’s grid upgrade

By BUUMBA CHIMBULU

GOVERNMENT has unveiled a 15-year Grid Resilience Programme that will channel savings from the country’s recent sovereign debt management efforts into strengthening its electricity infrastructure.

Secretary to the Treasury Felix Nkulukusa said the programme would be financed through savings generated from the successful repurchase of the country’s outstanding US$1.365 billion 2053 Bond B Notes, marking a major shift from debt servicing to productive investment.

Mr Nkulukusa said the debt transaction was backed by a US$600 million facility from the African Development Bank and US$550 million from the Bank of Zambia.

He explained that under the debt-for-energy conversion framework, Government would invest US$275 million over the next 15 years in upgrading the country’s electricity distribution network.

Mr Nkulukusa described the initiative as one of the most significant examples of converting debt savings into long-term infrastructure investment in the country’s recent economic history.

“The Grid Resilience Programme would form the cornerstone of the country’s strategy to deliver reliable, affordable and resilient electricity, which is critical for economic growth, industrialisation and job creation,” he said.

According to Mr Nkulukusa, a stable power supply is essential for the expansion of key sectors such as mining, agriculture, manufacturing, tourism, digital services and small and medium-sized enterprises.

It also supports households, schools, health facilities and other public services nationwide.

The programme will focus on reducing technical losses, removing network bottlenecks, improving system reliability and expanding electricity access to underserved communities and businesses.

It will also integrate renewable energy solutions, including solar power and battery storage systems, to strengthen climate resilience.

“The investment aligns with Government’s ambition to position Zambia as a regional energy hub while supporting plans to increase copper production,” Mr Nkulukusa said.

He noted that a modernised electricity network would help the country better manage future supply shocks, facilitate regional power trading through the Southern African Power Pool and optimise electricity imports and exports when required.

The programme is also expected to contribute to private-sector growth, job creation and improved competitiveness, while supporting efforts to diversify the economy beyond copper.

Implementation of the initiative will be overseen by ZamGridCo, a newly established entity that will operate under a dedicated governance framework comprising private-sector representatives and government nominees.