Zambia's electricity sector has become a focal point of intense political scrutiny and debate, with opposition leaders raising serious concerns about government transparency, the role of the national utility ZESCO, and the increasing involvement of private power traders. These criticisms come amidst a noticeable, albeit sudden, increase in power supply hours in certain residential areas, which some view as a politically motivated move.

Chishala Kateka, leader of the New Heritage Party (NHP), has issued a cautionary message to residents living in compounds, urging them not to be swayed by the government's abrupt decision to extend power supply hours in their communities. Kateka interprets this sudden uptick in electricity provision as a deliberate tactic by the government to appease the populace. She passionately implored residents to convey a clear message to the government: ‘mwakamba late’ – signifying that the intervention is belated and questions where the government's efforts were previously.

Further amplifying the political pressure on the energy sector, Antonio Mwanza, leader of the Democratic Progressive Party (DPP), has called for a comprehensive review of all existing Bulk Power Supply Agreements and trading contracts. He has also demanded a Parliamentary inquiry to ascertain whether Zambia is incurring revenue losses within its critical electricity sector. Mwanza insisted on the immediate public release of official data from key institutions such as ZESCO, the Energy Regulation Board (ERB), and the Southern African Power Pool (SAPP), covering electricity imports and exports, contractual details, and financial transactions.

In a recent statement from Lusaka, Mwanza directly accused Minister of Energy Makozo Chikote of intentionally misleading Zambians concerning the nation’s actual energy status. This accusation follows Chikote’s earlier dismissal of “politicking” in response to revelations about the alleged use of middlemen by the government and ZESCO in electricity import and export operations. Mwanza vehemently refuted the Minister’s assertion that “ZESCO imports directly and does not use middlemen,” highlighting that, according to the ERB, ZESCO no longer holds the exclusive right to import or export electricity.

Mwanza pointed out a significant shift in the regulatory landscape, specifically citing the Electricity (Open Access) Regulations, 2024 (SI 40), which effectively dismantled ZESCO’s long-standing monopoly. This regulatory change has paved the way for various private power traders, including prominent entities like Copperbelt Energy Corporation (CEC), Africa GreenCo, and Enterprise Power, to engage in electricity importation. These private companies are now able to utilize ZESCO’s extensive infrastructure for a negotiated fee, allowing them to supply power directly to mines and other customers, often in scenarios where ZESCO itself could have managed the transactions.

Challenging another of Minister Chikote’s claims, Mwanza disputed the assertion that none of the power exported by private traders originates from ZESCO. He provided concrete evidence by referencing a 13-year Bulk Supply Agreement (BSA) forged in 2022 between CEC and ZESCO. Under this specific agreement, CEC procures bulk electricity from ZESCO and subsequently resells it to mining operations. This arrangement, Mwanza argued, directly contradicts the Minister’s statement, proving that “some private traders buy directly from ZESCO and then resell. Therefore, it is untrue to say ‘none of the exported power comes from ZESCO’.”

Furthermore, Mwanza questioned the accuracy and transparency of the figures presented by Minister Chikote, who stated that “ZESCO imported an average of 238 megawatts while private traders brought in 358 megawatts.” Mwanza underscored the absence of any published, verifiable reports from the ERB, ZESCO, or SAPP to substantiate these numbers. He cited, as an example, the CEC Annual Report, which indicated that CEC alone wheeled an average of 248 MW in 2021 on behalf of ZESCO, contrasting sharply with the Minister's unsubstantiated claims. Without official, verifiable documentation, Mwanza contended, the Minister’s figures remain mere “political rhetoric, not evidence.”

Mwanza elaborated on the financial implications of this evolving energy trade model. He explained that whenever an independent trader facilitates the import or export of power through Zambia, ZESCO’s revenue is limited to a mere wheeling fee for the usage of its infrastructure. He highlighted the GreenCo–FQM deal as a prime illustration, where ZESCO acted solely as a facilitator while GreenCo independently financed $50 million worth of imports to deliver approximately 125 MW of power. In such arrangements, ZESCO is effectively bypassed, losing out on valuable trading margins. Mwanza lamented that “This model deprives ZESCO of billions of Kwacha in potential revenue, weakening its balance sheet while private traders pocket the profits.”

The DPP leader concluded his critique by asserting that the outsourcing of vital import and export functions to private entities fundamentally diminishes ZESCO’s role, effectively reducing it to a “transmission company.” This shift occurs even as ZESCO continues to bear the substantial costs associated with maintaining critical national infrastructure and ensuring overall national energy security. Mwanza sternly criticized the Minister of Energy, stating that he “has chosen to play politics with the suffering of Zambians. Instead of being honest about the structural weaknesses in ZESCO and the questionable role of private traders, he has chosen to mislead the nation.”