Government Accelerates Energy Reforms to Unlock Investment and Economic Growth
President Hichilema announces major reforms cutting approval times from 25 months to 48 hours
President Hakainde Hichilema has reaffirmed his administration's commitment to transforming Zambia's energy sector through comprehensive reforms that are already delivering remarkable results for investors and consumers alike.
Speaking at the Energy Forum for Africa Conference on Wednesday, the President outlined how his government's progressive approach has revolutionized an industry that was previously closed to private participation.
Dramatic Improvement in Investment Climate
The President highlighted one of the most striking achievements of the new administration: the dramatic reduction in project approval times. Under the previous government, investors seeking to develop a 20-megawatt solar project worth approximately $20 million faced a grueling 25-month wait for environmental assessment approval from ZEMA.
"Now you can get your approval on an assumption of presumptive approval. At ease, 48 hours, you get your approval," President Hichilema announced to the forum participants. "Now look at the difference: 25 months and 48 hours."
This transformation represents a fundamental shift in how Zambia approaches energy investment, removing bureaucratic barriers that previously deterred crucial private sector participation.
Opening Markets for Competition and Innovation
The President emphasized how his administration has broken down longstanding monopolies in the electricity sector, welcoming independent power producers and traders that were previously prohibited.
"You talked of electricity, it was ZESCO; anything else, you are in the wrong room if you raise a matter like that," the President recalled of the previous restrictive environment. "Today the reforms are making it possible, and we'll continue with those reforms to support the agenda for universal access to electricity."
The government is now actively promoting:
Independent power producers
Independent electricity traders
Net metering systems
Power blending to reduce consumer costs
Innovative Power Blending Strategy
President Hichilema introduced the concept of "power blending" as a key reform to make electricity more affordable for consumers. This strategy involves combining power from different sources at varying costs to create an affordable average price.
"There will be some expensive sources... generating power at 33 cents per kilowatt-hour. If we produce power from certain sources at 7 cents per kilowatt-hour, we can blend these two and make power affordable to the consumers," he explained.
This innovative approach ensures that even as Zambia diversifies its energy mix, electricity remains accessible to ordinary citizens and businesses.
Legislative Framework Being Strengthened
The President confirmed that the reforms are being backed by comprehensive legislative changes, with Parliament reviewing the entire electricity regulatory framework. This includes updates to the Electricity Act and other key legislation to support the transformation agenda.
Addressing Historical Investment Discrimination
President Hichilema also drew attention to the unfair treatment African energy projects receive in global capital markets, where identical projects on the continent face discriminatorily higher financing costs than elsewhere in the world.
"The price of capital for our continent has been discriminatorily too high; same sector, same business, Africa pays more than anyone else in the world. That is not correct," he stated, highlighting his administration's awareness of broader systemic challenges.
Proven Results During Crisis
The wisdom of these reforms was demonstrated during last year's drought, when the diversified energy approach helped maintain economic growth despite challenging conditions. The President noted that without these reforms, it would have been impossible to sustain operations in critical sectors like mining, manufacturing, and agricultural irrigation.
Energy Minister Emphasizes Implementation Focus
Energy Minister Makozo Chikote reinforced the government's commitment to rapid implementation, stating that the focus must now be on beating project timelines.
"As a country, we are on the right trajectory. All we are focusing on is to make sure that our projects have a timeline; we have to beat the timeline," Minister Chikote said. "The Energy Forum for Africa has proven to be more than a conference; it is a catalyst for investment, collaboration and transformation."
Looking Forward
The President's address demonstrates how the current administration has successfully transformed what was once a restrictive, monopolized sector into a dynamic, competitive market that welcomes private investment while protecting consumer interests through innovative pricing strategies.
With approval times slashed by over 99%, legislative frameworks being modernized, and new market participants actively encouraged, Zambia's energy sector is positioned for unprecedented growth under the current government's leadership.
The administration's message to potential investors is clear: Zambia is open for business, with streamlined processes and supportive policies designed to accelerate the country's journey toward universal energy access.