RISING ELECTRICITY TARIFFS HINDERS INVESTMENTS-DODIA

THE continued rising of electricity tariffs is making it difficult to do business in Zambia, Private Sector Development Association (PSDA) Chairperson Yusuf Dodia has said.

Earlier this year, the Energy Regulation Board (ERB) approved ZESCO’s application to revise its tariffs by an average of 37%,9%,15%, 10% and 14% for the years 2023,2024,2025 2026 and 2027.

Mr. Dodia told The Scoop that the private sector should begin preparing for next year as increased electricity tariffs would be a toll on the private sector to adequately expand.

“ZESCO tariffs have continued to rise and you know ERB approved the increase of tariff till 2025.So next year 2024 we expect the tariffs to go up. Now if you put all these factors together, it makes Zambia quite an expensive investment destination,” Mr. Dodia said.

“Doing business in Zambia is no longer easy as it used to be and local businesses are looking at smaller profits and this is not impressive.So, clearly there is no conducive business environment for the private sector to flourish,” he said.

He said that more effort is needed from the Government to pay much attention towards the enhancement of the private sector environment with the view to stimulate growth.

Mr. Dodia said that in a bid to expand the private sector, there should be continuous identification of factors limiting private sector growth.

He said in an effort to revitalize private enterprises, it was essential for the government to make theoretical breakthroughs, ensure institutional safeguards and create a more conducive environment.

He further urged the private sector players to aggressively embrace technology to help mitigate negative effects as a result of the high cost of doing business.

Mr. Dodia said that with good policy frameworks and management strategies the private sector could adequately advance development.

He added that the private sector remained an important agent of change and potential partner for implementing SDGs.