<\/p>\n
The debt-for-development arrangement, backed by the African Development Bank, will allow Zambia to reduce borrowing costs while channelling savings into expanding electricity access and strengthening the national grid.<\/p>\n
<\/p>\n
Economist and Energy expert Kelvin Chisanga said the decision reflects a strategic shift in how the country is managing its debt portfolio.<\/p>\n
<\/p>\n
\u201cThere is an economic value in the debt recycling process that we are actually being able to undertake,\u201d Chisanga said, adding that redirecting funds from debt servicing to energy investment represents \u201ca very formidable financial decision\u201d with strong productive potential.<\/p>\n
<\/p>\n
Chisanga said the investment is particularly significant for Zambia\u2019s mining sector, which accounts for around 50% of national electricity consumption. Reliable power supply is critical to maintaining output and preventing disruptions in a sector that underpins the country\u2019s export earnings.<\/p>\n
<\/p>\n
\u201cWe understand very well that the mining sector demands more power\u2026 having a baseload which should be able to sustain the productive sense of this economy,\u201d Chisanga said.<\/p>\n
<\/p>\n
Beyond mining, improved energy capacity is expected to benefit agriculture, manufacturing and small businesses. Chisanga said energy is a foundational input across sectors, and increased supply would support broader economic expansion.<\/p>\n
<\/p>\n
\u201cThis will\u2026 make energy sufficiently available to ensure that the productive sense of the economy goes with its maximum exposure,\u201d Chisanga said.<\/p>\n
<\/p>\n
The move is also expected to contribute to a more stable macroeconomic environment, including support for foreign exchange earnings and reduced vulnerability to external shocks.<\/p>\n
<\/p>\n
Chisanga said Zambia\u2019s approach offers lessons for other countries in the Southern African Development Community, particularly in using debt restructuring to create fiscal space for targeted development spending.<\/p>\n
<\/p>\n
\u201cDevelopment is dependent on targeting sectors that have a strong multiplier effect,\u201d Chisanga said, pointing to gains in areas such as agriculture, social protection and public services.<\/p>\n
<\/p>\n
Looking ahead, Chisanga emphasised the importance of diversifying energy sources, warning against over-reliance on hydropower in the face of climate risks.<\/p>\n
<\/p>\n
\u201cAfrica should now look into energy diversity\u2026 we should not just depend on hydropower,\u201d Chisanga said.<\/p>\n
–ChannelAfrica–<\/p>\n","protected":false},"featured_media":36966,"template":"","meta":{"_acf_changed":false,"_links_to":"","_links_to_target":""},"news-type":[44],"class_list":["post-36965","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"Zambia has secured sufficient investor support to proceed with a $1.36 billion bond buyback, unlocking an estimated $275 million to be redirected toward energy infrastructure, in a move aimed at supporting economic recovery and industrial growth.","published_date":"","news_description":"Zambia has secured sufficient investor support to proceed with a $1.36 billion bond buyback, unlocking an estimated $275 million to be redirected toward energy infrastructure, in a move aimed at supporting economic recovery and industrial growth.","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/36965","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/36965\/revisions"}],"predecessor-version":[{"id":36967,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/36965\/revisions\/36967"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/36966"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=36965"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=36965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}