Lusaka – The World Bank says Zambia is facing its toughest economic challenge in a decade as weak commodity prices, electricity shortages and slowing growth in China hit growth in the country.
The World Bank said at a briefing on Wednesday in Lusaka that Zambia needs to charge higher electricity tariffs for its mines to attract investment in power generation.
It, however, said the move might be unpopular with mining firms that consume 55 per cent of power in Africa’s second-largest copper producer.
World Bank senior economist Gregory Smith said the country also needed to strengthen its fiscal position to restore confidence in its economy which is expected to grow less than four per cent in 2016.[pro_ad_display_adzone id=”70560″]
Smith, however, added that the economy would expand between five and six per cent in 2017.
“In January, Zambia will begin importing an extra 200 megawatts (MW) of electricity from its neighbour Mozambique to stem power shortages.’’
Zambia already imports 148 MW from Mozambique, Director of Energy Oscar Kalumiana said at the briefing. (Reuters/NAN)
