The Civil Society Organization-CSO- Debt Alliance has warned the government against contracting energy debt as Zesco strives to raise finances for power imports to cushion the energy deficit.
Zesco Limited needs over K390 million equivalent to $15 million monthly from retail customers to contribute toward the importation of 788 megawatts of electricity to mitigate the deficit.
In an interview with Phoenix News, Alliance National Coordinator Peter Mumba says the said amount is huge for ZESCO’s financial muscle and that the government may be tempted to borrow in order to raise the money.
Mr. Mumba has however cautioned that borrowing must be avoided because the country cannot afford to get into any more debt.
He explains that in the past, a lot of guaranteed debt by state owned enterprises also contributed to Zambia’s indebtedness.
Mr. Mumba is urging the government to instead explore other methods of attracting investments in the energy sector as opposed to contracting loans to finance energy projects in an effort to bridge the energy gap.
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