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Energy & Water
Zhongying Changjiang International Investment
Guarantee Company, a subsidiary of Wu Han Kaidi
of China, is set to create more than 200 000 direct
jobs in Zambia. It is a very interesting development
of an entirely new industry, tailor-made to succeed in
the Zambian environment.
Access to electricity in many rural areas is quite
limited in Zambia. In remote rural areas, electricity
is fundamental for economic progress. Sustainable
development in agribusiness, small-scale mining,
and tourism relies on rural electrification. Challeng-
es arise from the long distances that exist between
existing power stations and the small population,
levels of capital, and skill sets for the development of
new stations. Therefore, the government has estab-
lished the Rural Electrification Authority (REA). The
REA is an institution that mobilizes funds to promote
rural electrification. They have developed and imple-
mented a Rural Electrification Master Plan (REMP)
that holds as its primary objective, the facilitation of
achieving at least 51 percent electrical coverage of
rural areas by 2030.
In order to broaden participation in the development
of rural electrification, the REA promotes innovative
Wind energy is another alternative that Zambia has much
potential to be at the forefront
Power lines ensuring energy supply across the country
Workers in the tunnels under Kariba Dam
RURAL ELECTRIFICATION
OIL & GAS
approaches such as the involvement of private sec-
tor players, cooperatives and local communities in
generation and distribution initiatives. The success-
ful implementation of the REMP partly depends on
active participation of the private sector and inde-
pendent power producers, as well as contractors
and consultants. The enactment of the Zambia
Development Act in 2006 and the Public Private
Partnership Act in 2009 provides an opportunity for
public and private players to actively participate in
all economic activities such as the rural electrifica-
tion programme.
Zambia’s downstream oil industry plays an important
role in the economy. Petroleum, all of which is im-
ported, accounts for 9 percent of Zambia’s energy
demand. The 1720-kilometre long Tazama pipeline,
which is jointly owned by Zambia and Tanzania, al-
lows the importation of crude oil into Zambia from
Tanzania. The procurement of petroleum conducted
through an international competitive bidding process
and is then transported to the Indeni Petroleum
Refinery. This refinery, with a capacity of 800,000
tonnes per year, refines the crude oil that is distrib-
uted into the market by international and local com-
panies operating in Zambia.