Energy crisis presents an opportunity to address structural challenges – Wina

Government says the challenges the country is currently facing especially in the energy sector present an opportunity for the nation to address the structural challenges and binding constraints to growth.

In a speech read on her behalf by Secretary to the Cabinet Rowland Msiska at the launch of the World Bank’s sixth Zambia economic brief this morning, Vice President Inonge Wina notes that though painful, the firm steps taken by government in the energy sector will in the long run deliver in a much sustainable way the much needed electricity to grow the economy.

Ms. Wina also states that as part of the strategy, the energy sector will in the medium term be one of the major contributors to foreign earnings.

The Vice President says this will strengthen the country’s external sector which is in deficit and help build reserves that will underpin future growth and assure foreign direct investment.

And World Bank Senior Economist Gregory Smith says the current power deficit in Zambia is impacting on all sectors of the economy among them mining, manufacturing and other sectors which have been hit hard as costs have increased and margins squeezed leading to job losses.

He notes that the power sector is pivotal to Zambia’s growth in the future.

Mr. Smith says the Zambian economy has expanded by an average of 6.4% to 7.4% over the last decade which has resulted in an increase in the demand for electricity.

Mr. Smith states that the prospect of solar and thermal generation in the next few years will help diversify Zambia’s power generation to complement its hydro resources.

And in a speech read on her behalf by Director of Energy Oscar Kalumiana, Energy Minister Dora Siliya says government is working hard to ensure that the country comes out of the energy crisis it is currently facing.