Power and electricity in Zambia have been privatised, allowing any business to operate in these fields if it can meet the basic requirements.
Government incentives, including tax relief, exemption from import duties and exemption from company tax for 10 years, have opened the way for development of several potential projects, including: upgrading Kafue Gorge Lower hydroplant; a 330 kV interconnector between Zambia and Tanzania; a 132 kV interconnector between Zambia and Namibia to supply power to Mkushi Farm Block, 300 km north of Lusaka; and the development of a mini-hydroelectric scheme in North Western Province.
Equity investment has been pegged at 20 per cent of the total capital income of the project.
Zambia Electricity Supply Corporation (ZESCO) has started a four-year $213 million World Bank funded programme to overhaul its Kafue Gorge and Kariba hydroplants, along with the distribution network.
High connection fees and tariffs has led to only 18 per cent of homes in Zambia having access to electricity.