Zambia's state-owned power utility, ZESCO, said in a statement that it is seeking to import electricity to avoid power shortages caused by drought in the country.
"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," the company said.
ZESCO explained that the prolonged drought, exacerbated by the natural phenomenon of El Niño, has lowered water levels at dams in a country that relies on hydropower for 86% of its electricity. As a result, the utility estimates a power shortage of 700 MW in 2024.
"The current environmental conditions have severely impacted our ability to meet this demand, resulting in necessary power rationing measures and projected substantial financial losses for the corporation," ZESCO noted, adding that the losses can "potentially diminish national economic output, especially within the mining sector."
In addition to energy imports, ZESCO announced plans to introduce power supply agreements to facilitate access to backup power at critical times and a cost-shifting mechanism to manage the additional costs of backup power more equitably.
In early March, Victor Mapani, managing director of ZESCO, said Zambia had decided to introduce power rationing due to the ongoing drought. He further stated that Zambia will continue to import electricity from Mozambique to alleviate power shortages in the economy.
On March 1, Zambian President Hakainde Hichilema declared a national state of emergency due to a drought that has devastated food production and power generation and called on both local and international partners to help combat its effects.