Negative talk damaging to energy sector – Habazooka
By Mast Reporter
ECONOMIST Lubinda Habazooka has warned that reckless statements about Zambia’s energy sector from political actors are harmful to the aspirations of attracting investment to develop the sector.
In an apparent response to certain allegations made about the electricity open access policy and the new players in the electricity space by known opposition figures, Habazooka, a former president of the Economics Association of Zambia (EAZ), warned that negative public discourse or political interference could jeopardise funding by damaging the reputation of companies engaged in critical negotiations.
“The energy sector is highly capital-intensive, and before funding projects, investors conduct rigorous due diligence – assessing sovereign risks and vetting Independent Power Producers (IPPs) and traders,” he said.
Habazooka said this time, when the country is experiencing one of the most critical energy crises since independence, government had initiated bold reforms, including market liberalisation, increased private sector participation and energy diversification.
“Central to this transformation are regulated open access and the promotion of power trading as both a long-term strategy and a short-term solution. Negative public discourse or political interference can jeopardise funding by damaging the reputation of companies engaged in critical negotiations,” he said.
Habazooka expressed frustration with political statements made by Zambians, which brought up concerns from funders and investors interested in putting money in the sector.
“As someone often engaged by international stakeholders for investment insights, I am increasingly frustrated by the frequency of avoidable concerns raised from abroad. It is imperative that we, as a nation, exercise caution and foster a cooperative environment that builds investor confidence and supports national development,” he said.
Habazooka said when he served as EAZ president, he helped lobby for open access so that anyone with power could use existing infrastructure to sell it within Zambia or abroad, something that existed in many countries.
“…and is an exciting market that creates a new industry like you never imagined. The end winners are the consumers,” he said.
Habazooka urged Zambians to lead the liberalised power sector by seizing the opportunities, which included developing solar mini-grids in rural areas, participating in regional power trading initiatives, supplying electricity to commercial and industrial customers and shifting from being consumers to producers and innovators in the energy space.
He noted the positive trends emerging in the Zambian energy space, such as the growth in merchant power plants selling electricity directly to large consumers and increase in private wheeling arrangements, particularly in the mining and manufacturing industries.
Habazooka also highlighted the expansion of cross-border mini-grids and energy-as-a-service models in border communities as viable energy solutions which require support and not attack.
