by: Michele Vollaro | March 19, 2024
The Government of Zambia, in collaboration with the World Bank, inaugurated the National Program for Energy Advancement and Transformation (NEAT), a $700 million initiative aimed at improving financial sustainability, reliability and resilience of the country’s electricity sector by 2033.
The program aims to support the national utility ZESCO in returning to sustainable management, attract significant investments from the private sector and promote more inclusive development at the national level.
The NEAT program, which begins with a first phase that will run from 2024 to 2026, will see the provision of a non-repayable loan of 100 million dollars to improve the financial and operational performance of ZESCO, as well as strengthen the financing mechanisms for rural electrification by supporting the Rural Electrification Authority (REA). It also aims to refine the procurement process for renewable energy projects outside of hydropower.
Achim Fock, World Bank Country Director for Zambia, emphasized the importance of this financing for the country’s sustainable and resilient energy future, highlighting the long-term commitment to economic growth through energy portfolio diversification. “We are confident that by addressing immediate financial challenges and setting the stage for a diversified energy portfolio, we are setting the foundation for long-term economic growth,” Fock said.
The NEAT program will support the implementation of the government’s recently launched Integrated Resource Plan, consistent with the multi-year strategic plans of ZESCO and REA. Yadviga Semikolenova, World Bank Energy Director for Eastern and Southern Africa, highlighted the important focus on diversifying energy sources and improving climate resilience, with the addition of substantial renewable capacity of 1,458 megawatts.
The program reflects the World Bank’s commitment to supporting Zambia’s energy policies, in line with the 8th National Development Plan, the government’s Vision 2030 agenda and the National Energy Policy. This initiative is also aligned with the Bank’s global goals of ending extreme poverty and promoting prosperity on a livable planet, through access to reliable and sustainable energy sources.
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