Zambia’s Ambassador to Germany says reliable energy is crucial for the development of the agriculture and mineral resource sectors of the country which are key to earning foreign currency.

In a statement obtained by Money FM News, Anthony Mukwita described investment of $1.5 Million by Denmark’s Investment Fund for Developing Countries (IFU) into the Lusaka-based GreenCo Power Services to operationalize a new business model for renewable energy in Zambia as a true mark of economic diplomacy.

Ambassador Mukwita said Africa GreenCo Group has been focused on investing in the energy sector in Zambia since 2017as the country offers some of the best investment options on the African continent.

He stated that the introduction of Africa GreenCo is expected to pave way for more private players in the energy sector whose role is that of buyer and supplier of power, not only within the country but to the southern African region through SADC’s Southern Africa Power Pool.

“Since 2017, Africa GreenCo founder member Ana Hajduka has had several interactions with high ranking Zambian government officials while the Zambian Embassy facilitated a top-level meeting with H.E President Edgar Lungu.”

“Since then, Ms. Hajduka and Africa GreenCo have engaged officials from the Ministries of Energy Ministry and National Planning resulting in government approving changes to the energy policy and legislation that paved the way for another player in the energy sector whose role would be that of buyer/supplier and provider of power services,” Ambassador Mukwita said.

Ambassador Mukwita said government has made massive investments in the energy sector as experts suggest that in less than a year, it is possible to put behind the era of power shortages in Zambia.

“The nation should look to the near future with hope and confidence as the energy policies of President Lungu are set to revolutionize the energy sector in the country with the help of Africa GreenCo”, he stated.

And Africa GreenCo Group said the investment by Investment Fund for Developing Countries completes the company’s operational establishment in Lusaka and paves the way for 2021 capitalization of the credit for Independent Power Producers or (IPPs).

Zambia has been experiencing power shortages since 2015 as the effects of climate change have led to a drastic drop in water levels in the country’s dams where hydropower is generated, a source Zambia depends on to a large extent.

Consequently small, medium to large scale businesses have been affected leading to lower production output, loss of revenue and loss of employment in some unfortunate cases, as ZESCO is the only major buyer and supplier of power in the country, a situation that has led to an unsustainable financial burden on the company.