Beatrice Lang
Zambia has several neighbouring countries that it exports electricity to, including Botswana, Namibia, the Democratic Republic of Congo, and Zimbabwe. In March 2022, Zambia's electricity exports totalled K300 million (around $18 million). The country has made significant progress in electrification rates, particularly in rural areas, through a large push for mini-grid and off-grid solutions. Zambia's electricity exports are the highest non-agro export for the country, and efforts are being made to balance exports with the needs of its citizens.
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What You'll Learn
Zambia's electricity exports: the highest non-agro export
Zambia has a diverse range of potential sources of renewable energy, including abundant water resources for hydropower generation. The country has an estimated 6,000 megawatts of untapped hydropower potential, with hydroelectricity constituting 90% of Zambia's electricity generation pool. Zambia's main hydroelectric power facilities include the Kariba North Bank Power Station, Kafue Gorge Power Station, Kafue Gorge Lower Power Station, and the Victoria Falls Power Station.
Zambia is potentially self-sufficient in sources of electricity, with a growing power need for commercial and residential use. The country has three main power-producing and distributing companies: Zambia Electricity Supply Corporation Limited (ZESCO), a government-owned company, Lunsemfwa Hydro Power Limited, and Ndola Energy. ZESCO is the largest of the three and owns and maintains 94.7% of the installed hydropower capacity. As of 2022, Zambia had a surplus of 1000 MW of electricity, which was exported to the Central and Southern African region.
ZESCO has contracts to supply power to Botswana, Zimbabwe, Namibia, and the Democratic Republic of Congo, totalling 430 MW of electricity exports. For example, in March 2022, ZESCO exported 80 MW to Botswana Power Corporation and 100 MW each to Namibia's Nampower and the Zimbabwe Electricity Supply Authority.
Electricity has become the highest non-agro export for Zambia, with export earnings from electricity strengthening the country's economy and flowing back into the country through ZESCO, which is wholly owned by the people of Zambia. In March 2022, Zambia's electricity exports were valued at K300 million (approximately $18 million).
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Botswana, Namibia, and Malawi: Zambia's fastest-growing export markets
Zambia's top exports in 2023 included electrical energy, which represented 3.8% of its overall exports. While it is unclear how many countries Zambia exports electricity to, Zambia has the ability to export electricity through the Southern Africa Power Pool.
Zambia's fastest-growing export markets include Botswana, Namibia, and Malawi. Botswana and Namibia are located in Southern Africa, bordering Zambia, while Malawi is located in Central Africa. Botswana has a population of about 2.5 million people and is an upper-middle-income country. It has historically experienced rapid economic growth, driven by significant diamond wealth, robust institutions, and prudent economic management. However, growth has slowed in recent years due to overdependence on diamonds and a decline in production. Botswana's economy remains reliant on mineral revenues, and it faces challenges in reducing poverty and inequality. The World Bank is supporting Botswana's development through initiatives such as the Renewable Energy Support and Access Accelerator, which aims to enable renewable energy grid integration and improve electricity service in rural areas.
Namibia is also an upper-middle-income country, and it offers significant investment opportunities in on-grid and off-grid power generation, particularly in renewable energy sources. Zambia exports high-value agricultural products such as beans, soybeans, and groundnuts to food processors in Namibia.
Malawi is a country in Central Africa, and Zambian companies like Good Nature Agro have expanded their operations into Malawi. Good Nature Agro partners with smallholder farmers in Zambia and Malawi, providing training, financing, and market access for legume crops. They have significantly increased the incomes of over 20,000 smallholder farmers and are recognised as one of Africa's fastest-growing companies.
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Zambia's electricity exports to Botswana
Zambia exported $79 million worth of electricity to Botswana in 2023, making it the country's fourth-largest market for electricity exports. Botswana was also the fastest-growing export market for Zambian electricity between 2022 and 2023, with exports to the country increasing by $52.1 million during this period.
Zambia has a diverse energy sector, with hydroelectric power, coal, solar, and renewable energy sources contributing to its electricity generation. The country's main hydroelectric power facilities include the Kariba North Bank Power Station, Kafue Gorge Power Station, and Victoria Falls Power Station. Zambia also has two utility-scale solar power plants, with a total installed solar capacity of 89 MW.
The country's energy sector offers significant investment opportunities, particularly in on- and off-grid power generation, due to its growing power needs and ability to export electricity through the Southern Africa Power Pool (SAPP). Power Africa has supported the development of 208 MW of electricity generation projects in Zambia, and various firms have received support from the US Embassy to move transactions forward.
Botswana, on the other hand, is working towards achieving a reliable, safe, and affordable electricity supply for its citizens. The country's Integrated Resource Plan (IRP) aims to have renewable energy contribute 30% to its energy mix by 2030. Botswana's power utility, the Botswana Power Corporation (BPC), has also established the Botswana Energy Regulatory Authority (BERA) to regulate the energy sector. The country currently imports most of its power from South African utility Eskom, with additional imports from Nampower (Namibia), Zesco (Zambia), and the SAPP to make up for any production shortfalls.
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Zambia's electricity exports to the DRC
Zambia exported N/A in electricity in 2023, making it the 42nd largest electricity exporter in the world. The country has 2,800 MW of installed electricity generation capacity, with 83% from hydroelectric power, 9% from coal, 5% from heavy fuel oil, and 3% from solar. Zambia's electricity exports go to several countries, with the main destinations being Namibia, the Democratic Republic of the Congo (DRC), Botswana, Zimbabwe, and Tanzania. The DRC is the second-largest importer of electricity from Zambia, with a total import value of $90.5 million.
Zambia's electricity market is structured as a single-buyer market, with ZESCO acting as the sole off-taker and bulk retailer of electricity through the national grid. Independent Power Producers (IPPs) can operate their own assets and generate electricity, but they must sell it to ZESCO through Power Purchase Agreements (PPA) if they want to distribute it via the grid. Zambia has several main hydroelectric power facilities, including the Kariba North Bank Power Station, Kafue Gorge Power Station, Kafue Gorge Lower Power Station, and Victoria Falls Power Station.
The country's growing power needs and ability to export through the Southern Africa Power Pool have created significant investment opportunities in on- and off-grid power generation, particularly in renewable energy sources. Power Africa has supported the development of 208 MW of electricity generation projects in Zambia, and various firms have received U.S. Embassy support to facilitate transactions. Zambia's largest importer of electricity is Namibia, with an import value of $123 million.
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Zambia's electricity exports to Zimbabwe
Zambia is the world's 42nd largest electricity exporter, with electricity being the country's fifth most exported product. Zambia's national electricity generation capacity stands at 3,456.8 megawatts, while its peak national demand is about 2,300 megawatts. The country's main hydroelectric power facilities include the Kariba North Bank Power Station, Kafue Gorge Power Station, Kafue Gorge Lower Power Station, and Victoria Falls Power Station, among others. Zambia also has a solar capacity of 89 MW and two utility-scale solar power plants.
Zambia exports electricity to several countries in Southern Africa, including Namibia, the Democratic Republic of the Congo, Botswana, Zimbabwe, and Tanzania. In 2023, Zambia's electricity exports to these countries were valued at $123 million, $90.5 million, $79 million, $20.6 million, and $6.22 million, respectively. The fastest-growing export markets for Zambia's electricity between 2022 and 2023 were Botswana, Namibia, and Malawi.
Zimbabwe, one of Zambia's electricity export destinations, faced a shortage of electricity due to issues at its power plants. To address this, Zambia agreed to export 100 megawatts of electricity to Zimbabwe through a three- to five-year deal. The negotiations were based on Zimbabwe making pre-payments of $6.3 million per month for the electricity. This agreement was set to commence the following month after the deal was announced.
Zambia's ability to export electricity through the Southern Africa Power Pool presents significant investment opportunities in on- and off-grid power generation, particularly in renewable energy sources. Power Africa has supported the development of 208 MW of electricity generation projects in Zambia, and various firms have received support from the U.S. Embassy to facilitate transactions.
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Frequently asked questions
Zambia exports electricity to at least four countries: Botswana, Zimbabwe, Namibia, and the Democratic Republic of Congo.
ZESCO, a vertically integrated parastatal utility, is responsible for exporting electricity from Zambia.
In March 2022, Zambia earned $18 million from electricity exports.
