Zambia is set to invest millions of dollars into strengthening the country’s electricity network.
This follows a landmark debt-for-energy agreement supported by the African Development Bank.
Government has launched a 15-year Grid Resilience Programme that will channel 275 million United States dollars into upgrading and modernising the national electricity distribution system.
The initiative follows the successful repurchase of Zambia’s 1.3 billion dollar 2053 Bond B Notes.
This is a transaction backed by a 600 Million dollar facility from the African Development Bank and 550 Million dollars from the Bank of Zambia.
According to the Ministry of Finance and National Planning, savings generated from the debt transaction will now be redirected towards improving electricity infrastructure instead of future debt servicing.
The Ministry of Finance says a stronger and more resilient electricity network is critical to supporting growth in mining, agriculture, manufacturing, tourism and other sectors of the economy.
This is according to a statement availed to ZNBC News by the Office of the Secretary to the Treasury, Ministry of Finance and National Planning.
