Budget promises sector growth – Energy experts
Published On October 2, 2017 » 1754 Views» By Davies M.M Chanda » HOME SLIDE SHOW, SHOWCASE
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. Kamanga

. Kamanga

By JAMES KUNDA –
ENERGY experts have expressed optimism about the sector’s growth prospects based on proposals presented in the 2018 National Budget.
Energy Forum Zambia chairperson Johnstone Chikwanda said the allocation of K251 million in the budget to rural electrification and the focus on off-grid systems would take Zambia closer to the meeting the Seventh United Nations Sustainable Development Goal (SDG), which calls for universal access to clean, affordable and sustainable energy by 2030.
Mr Chikwanda said if the programme was sustained for 10 years, more than 1.2 million households could have solar panel installations by 2030.
He welcomed the Government’s decision to increase import duty on non-energy saving electrical appliances such as stoves and electric geysers from 25 percent to 40 percent.
“This action, coupled with the banning of filament electric bulbs all goes to demonstrate government’s commitment to taking the sector to another level and assist consumers with a migration to energy saving loads,” Mr Chikwanda said.
He also commended the Government for opting to disengagement from the fuel procurement process and facilitating the creation of a new purchase model expected to be deployed in the first quarter of next year.
Enfin Limited managing director Andrew Kamanga said in an interview that the sector reforms announced by Mr Mutati were clearly defined on increasing electricity generation, assuring the country of security of energy supply.
Mr Kamanga said the unbundling of Zesco Limited was another milestone that would enable the power utility to enhance its capacity to feed consumers with adequate power supply.
He also supported the Government’s move to disengage itself for the fuel procurement sector and leaving it for the private sector.
Meanwhile, economist Chibamba Kanyama has said the withdrawal of tax concessions, announced by Finance Minister Felix Mutati was ‘long overdue’.
Mr Kanyama, who is also Bridges Limited managing consultant, said the budget was candid about the fact that Zambians would now finance the country’s economy.
“This is not an easy decision on the part of the Government but it looks like the Public Private Partnership is opening the window towards infrastructure investment,” Mr Kanyama said.
He said investors would now recoup their money from road users through road tolling fees, while digital technology would enable actual consumers of ZNBC television content to pay for it unlike before when license fees were paid through Zesco.
Mr Kanyama said such measures were a huge step towards ensuring only actual users of infrastructure paid the fees unlike before when the Government taxed everyone regardless to pay for services.
“The Government can now direct resources to supporting the vulnerable as we have noticed some marginal increase in allocations for social cash transfers,” he said.

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