Lusaka/Iringa. Zambia’s state-owned electricity utility Zesco said on Monday it is seeking to import power to avert an energy deficit that could affect output in Africa’s second-largest copper producer.
The country generates 86 percent of its electricity from hydropower stations.
Power generation has been hit by a severe drought induced by El Nino, a weather phenomenon resulting from the abnormal warming of the waters in the eastern Pacific, which raises temperatures globally.
As a result, Zambia expects a power generation deficit of 700 megawatts this year, Zesco said in a statement.
“We are negotiating additional electricity imports that will be strategically allocated to crucial sectors, including mining, agriculture, and manufacturing to support economic stability and growth,” Zesco said.
It did not give details of how much power it seeks to import.
Last week, Zesco warned mining companies there may be fluctuations in power supply due to the reduced generation capacity, raising concern over the country’s copper output.
Zambia’s copper output declined to about 698,000 tonnes in 2023 from 763,000 tonne s the prior year, according to the country’s mining chamber.
The potential risk to copper production from the African nation comes at a time when the market is already concerned about tightening global supplies constraining refined production of the metal, which is used in power and construction industries.
Speaking on a live-televised address on Tuesday, Zambia President Hakainde Hichilema said his government was considering to purchase power from Tanzania via the Zambia-Tanzania interconnector.
The proposed electricity purchase underscores the importance of regional collaboration in tackling energy challenges exacerbated by climate change.
It also highlights the potential for infrastructure projects like the Zambia-Tanzania interconnector to facilitate cross-border energy trade, enhancing energy security and stability in the region.
Further details on the terms of the power purchase agreement and the timeline for its implementation are expected to be released soon as both countries work towards finalizing the deal.
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President Samia Suluhu Hassan, has handed over a cheque of 354m/- from the National Bank of Commerce (NBC) as compensation to tobacco farmers, who were affected by hailstorms during the previous farming season in various regions across the country.
Handing over the cheque in Dodoma, the compensation is part of the crop insurance service provided by NBC in collaboration with the National Insurance Corporation (NIC).
Furthermore, President Samia has also handed over health insurance coverage to members of the Lindi Mwambao Cooperative Union based in Lindi Region, through the Farmers’ Health Insurance service provided by the bank in partnership with Assurance Insurance Company.
While visiting the bank’s pavilion at the Nanenane Agricultural Exhibition and being received and briefed by the bank’s Managing Director, Mr. Theobald Sabi, she said: “This crop insurance is one of the crucial solutions in ensuring farmers have a reliable income, without fear of challenges such as natural disasters, including hailstorms.
“I call upon all farmers in the country to make the best use of this important opportunity by accessing these kinds of insurance services. I also highly commend NBC and all the stakeholders participating in this programme.”
Elaborating further on the crop insurance service, the Minister of Agriculture, Hussein Bashe, stated that it will help to recover the loss farmers incurred, especially in various calamities beyond their control.
Citing them as floods, fires, and hailstorms, which have significantly affected the well-being of farmers and caused some to be reluctant to invest in the crucial sector, Mr Bashe added: “However, our President, this step by NBC is just the beginning, as this is the second year since they started offering this service, and the results are already visible.
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“As the government, we promise to continue supporting the wider implementation of this service, with the goal of ensuring that this crop insurance service reaches more farmers.”
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On his part, Mr Sabi said that the farmers who benefited from the compensations are from 23 primary cooperative unions in the regions of Shinyanga, Geita, Tabora, Mbeya, Katavi, and Kigoma.
He added: “In addition to these insurance services, as a bank, through this exhibition, we have continued with our programme of providing financial education and various banking opportunities to farmers, alongside offering them various loans, including loans for agricultural equipment, particularly tractors, to eligible farmers.:
At the NBC booth, President Samia also had the opportunity to be briefed on the various services offered by the bank to the farmers namely crop insurance and health insurance services.
There, the President had the chance to speak with some of the beneficiaries of the services, including the Vice-Chairman of the Lindi Mwambao Primary Cooperative Union, Mr. Hassan Mnumbe, whose union has been provided with a health insurance card from the bank.
Source: allafrica.com
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