MINISTRY OF ENERGY
PRESS STATEMENT
Lusaka, Tuesday, 27th May 2025
PETROLEUM SECTOR SHOWING POSITIVE GAIN– PS MUMBA UPDATES PARLY COMMITTEE
The Ministry of Energy has reported positive developments in the petroleum sub-sector, following the operationalisation of the TAZAMA Pipeline Open Access Framework.
This was disclosed today by the Ministry’s Permanent Secretary–Technical Services, Mr. Peter Mumba, when he appeared before the Parliamentary Committee on Budget and Planning, chaired by Honourable Fred Chaatila, Member of Parliament for Moomba Constituency
Mr. Mumba explained that the implementation of the Open Access Framework—initially delayed due to outstanding government debts to Oil Marketing Companies (OMCs)—is now fully underway. He revealed that although the delays had triggered threats of legal action from a few OMCs, the resolution of these challenges has since enabled the country to begin realising tangible benefits, including a notable reduction in diesel pump prices. Premiums have dropped from USD 83 to USD 54 per metric tonne.
He further stated that new regulatory guidelines have been introduced to promote fairness, competition, and transparency among OMCs. So far, the Ministry has not received any formal complaints under the new structure, which Mr. Mumba said was an encouraging indicator of industry acceptance and compliance.
Turning to the electricity sub-sector, Mr. Mumba informed the Committee that load shedding is gradually reducing as water levels improve at major hydropower stations such as Kariba and Kafue Gorge. However, he cautioned that power generation is still constrained, with most plants operating below optimal capacity due to generally low reservoir levels.
To manage the available electricity supply, the Ministry has significantly reduced power exports—from over 500 megawatts to just above 100 megawatts—to prioritise domestic consumption. Nonetheless, minimal exports are continuing under binding regional contracts, while imports remain necessary to help meet national demand.
Mr. Mumba also highlighted growing local and international investor interest in Zambia’s electricity sector, especially in renewable and alternative energy ventures. He said this increased investor confidence is critical for long-term energy security, and the Ministry is working to translate these prospects into concrete projects to diversify the national energy mix.
On rural electrification, he raised concern over the poor workmanship by some local contractors under the Rural Electrification Authority (REA). He reaffirmed the Ministry’s commitment to empowering Zambian contractors but stressed the need for strict quality control to ensure rural communities receive reliable and sustainable energy services. Mr Mumba said the ministry was happy with the works of REA in the electrification of rural and remote parts of the country
The Ministry of Energy remains resolute in its efforts to build a robust, transparent, and inclusive energy sector that supports national development and improves the quality of life for all Zambians.
Issued by:
Bob Sianjalika (Mr)
Principal Public Relations Officer
MINISTRY OF ENERGY