Zambia has cleared energy-sector investments worth about US $972M (ZMW18.4 billion) as the country steps up efforts to tackle electricity shortages and improve the resilience of its energy infrastructure.
The Energy Regulation Board (ERB) said the approvals, cover a wide range of activities across the electricity, renewable energy and petroleum industries. The regulator granted 23 licenses and 20 construction permits, while also approving several license expansions linked to energy development projects.
The approved investments include renewable energy equipment manufacturing and supply operations, petroleum transportation and distribution services, lubricant blending and import activities, and permits for 116 petroleum transport operators. The measures are expected to support greater private-sector participation in Zambia’s energy sector while enhancing the country’s fuel supply network.
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Zambia’s energy strategy
Among the projects approved are two utility-scale solar developments and five new fuel retail stations. Although the ERB did not disclose the capacity of the solar facilities or the value of individual projects, the approvals align with Zambia’s broader strategy to increase renewable energy generation and diversify its power mix.
The investment drive comes as Zambia continues to grapple with an electricity deficit caused largely by reduced hydropower output following prolonged drought conditions. Hydropower accounts for the majority of the country’s electricity generation, making the sector highly vulnerable to fluctuations in water availability. Government data released earlier this year showed that domestic power generation had dropped to around 1,635MW against national demand of roughly 2,400MW. To bridge the gap, Zambia has been relying on electricity imports, which exceeded 500MW at the time.
Pressure on the power system is expected to persist as demand rises from households, businesses and the mining industry, one of the country’s largest consumers of electricity. The International Monetary Fund has previously warned that Zambia’s energy shortfall could deepen if additional generation capacity is not developed at a pace sufficient to meet growing demand. The latest approvals underscore Zambia’s efforts to accelerate investment in both power generation and fuel infrastructure as it seeks to improve energy security, support economic activity and reduce the risk of future supply disruptions.
