Economist and Researcher Lubinda Haabazoka has called for a national indaba to discuss the unbundling of ZESCO Limited and INDENI Petroleum if reports going round about their purported unbundling is true.
Dr. Haabazoka said that such moves need national consensus before they are taken because the country and its people need to be well informed about the possible benefits and repercussions.
In a statement obtained by Q-News, Dr Habazooka recalled that the unbundling and privatization of ZCCM some years back has seen Zambia lose grip over its mineral resources.
Dr Habazooka said that the unbundling of INDENI will give Oil Marketing Companies an upper hand in the importation of finished stock and the government will be held at ransom with no room to maneuver around.
Dr. Habazooka said that the unbundling of ZESCO will produce duplicate positions with different people performing the same roles, hence a recipe for confusion.
Meanwhile, a Business and political Analyst, Francis Chipili, has said that the unbundling of ZESCO is most likely to hurt ordinary people and will further slow down the nationwide electrification.
Mr. Chipili said that Zambia doesn’t have the infrastructure to separate the operations of ZESCO as some parts of the country are way far away from the national grid infrastructure, adding that ZESCO is a strategic national asset whose unbundling must never be done in a hurry just to appease the IMF and or other interested imperialists.
Mr. Chipili argued that the larger part of Zambia has no ZESCO and or other hydropower infrastructure connectivity, meaning that the majority of the private sector that would be interested in acquiring commercial rights from ZESCO business units will be centered on those which are actually commercially viable, thereby disadvantaging the rural and far away places.
Mr. Chipili said that the country needs a Zambia that is 100 percent connected to the national grid infrastructure and that one of the reasons the agricultural settlement concept has not worked is the lack of electricity and good roads network.
The IDC released the following statement regarding on ZESCO
IDC ANNOUNCEMENT ON ZESCO
The Industrial Development Corporation has announced plans to restructure state power utility ZESCO.
Through a tender published in the Daily Mail of Tuesday, January 4th 2022, the IDC wants to engage a Consultant who will undertake financial and operational restructuring of ZESCO.
The IDC says the Consulant should also assess the possibility of segregating ZESCO’s main divisions such as generation, transmission and distribution into separate units.
IDC stated that the splitting of ZESCO should not only provide financial relief by disposing off loss making assets but will also enhance control of ZESCO’s efficiencies.
IDC also wants the Consultancy to improve ZESCO’s credit worthiness through a review of the current and contingency debts with a view to restructuring the outstanding debts as well as formulate loans restructuring plans and strategies.
The Consultant is also expected to provide plans on financial turn around of ZESCO and return the company to profitability through the review of all income streams, operating costs and expenses and balance sheet.
Bids for the consultancy should be sent through to the IDC not later than 28th January 2022.