Zambia’s Energy Future Hinges on Power Trading and Open Access – Dr. Lubinda Haabazoka
Amid one of the most crippling energy crises in Zambia’s post-independence history, prominent economist and energy policy strategist Dr. Lubinda Haabazoka is urging for a national business consensus to accelerate reforms in the energy sector. His focus: unlocking power trading and open grid access as cornerstones for investment, innovation, and long-term sustainability.
A former president of the Economics Association of Zambia (EAZ), Dr. Haabazoka is positioning the country’s energy landscape as a high-potential investment corridor. He argues that liberalized power systems can create a robust business ecosystem, one capable of attracting global capital, building local entrepreneurship, and boosting regional trade.
“Zambia’s energy future lies in expanding and refining ongoing reforms. Deepening support for power trading, open access, and diversification are not just strategies they are business imperatives that determine our development trajectory,” Dr. Haabazoka stated in a policy brief shared this week.
The country’s energy insecurity caused by climate-induced droughts and an overdependence on hydropower has severely impacted industrial productivity, disrupted small businesses, and heightened investor risk perception. However, this crisis is now catalyzing bold legal and policy reforms, opening the sector for private sector participation and competition.
One of the landmark reforms is the Electricity (Open Access) Regulations of 2024, which permits large consumers to procure power directly from Independent Power Producers (IPPs) and licensed power traders. This reform redefines the business model of electricity in Zambia from a state-controlled utility monopoly to a diversified, investor-driven marketplace.
Dr. Haabazoka, who was instrumental in lobbying for open access during his tenure at EAZ, sees this shift as a foundational pillar for new capital flows. “Allowing producers to trade electricity using national infrastructure opens up an entirely new market. It decentralizes control, stimulates innovation, and ensures price competitiveness all of which benefit the consumer and business community,” he noted.
Evidence of investor confidence is already emerging. Just this week, a private developer secured $70 million in financing to build a 100 MW solar power plant in Zambia. This deal highlights the scalability and viability of energy ventures under the new regulatory regime.
“Now imagine if a week before this deal, political noise or negative press about Zambia’s energy landscape surfaced? That funding would have vanished. Reputation is currency in the global capital market we must protect it at all costs,” warned Dr. Haabazoka, emphasizing the impact of political risk on investor sentiment.
A growing roster of energy firms africa GreenCo, CEC Plc, EnPower, Lunsemfwa Hydro, and Maamba Collieries are now actively engaged in bilateral energy sales, regional exports, and diversified supply models. Their presence signals that Zambia is fast becoming a regional energy hub with scalable export potential.
However, Dr. Haabazoka cautions that liberalization must be carefully managed to avoid destabilizing state assets. “ZESCO remains a national asset. We must adopt a hybrid approach that safeguards public infrastructure while enabling a competitive market. That’s the formula for resilience and sustainable business growth,” he explained.
He called on Zambian entrepreneurs to recognize energy not only as a consumption cost but as a strategic investment opportunity. “From rural solar mini-grids to cross-border power trading platforms Zambians must take the lead. We cannot outsource this revolution. It must be Zambian-owned, Zambian-built, and Zambian-driven,” he said.
Dr. Haabazoka also addressed the importance of political discipline, particularly in managing public statements around energy deals. “Every reckless utterance adds sovereign risk. The energy sector is no longer just about electricity it’s about GDP growth, job creation, and national competitiveness,” he noted.
Looking ahead, Dr. Haabazoka teased plans to explore nuclear energy as a future export commodity. He believes Zambia has the potential to monetize atomic power not just for local use but for regional trading, positioning the country as an energy exporter and forex earner.
“Let’s power Zambia’s future together. Let’s create a billion-dollar energy economy driven by innovation, investment, and inclusion,” he concluded.
May 17, 2025
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Alternative Poverty Alleviation for Zambia.
Zambia like many other developing countries in world continue grapple with high poverty levels among it’s citizens. Accordingly to the world bank 2025 poverty index report. 64.3 % of the population live on less than USD 2.5 per day. To better understand the drivers of poverty in Zambia, it is important to differentiate urban and rural poverty as each has its own characteristics. Urban poverty is driven by limited employment opportunities and income generating resources such as land, water, forestry etc. The limitation in these resources is as a result of high demand due to high population in urban areas that strip supply. Poverty in urban areas is characterized by inadequate decent accomodations an living spaces resulting in over clouding, lack of affordable land, forestry and water for consumption and economic activities such as agriculture, fishing etc. while urban areas provide more job opportunities, these opportunities are not sufficient to Carter for the high demand. Further due to the high cost of living in urban areas, incomes for most people are not adequate to assure the decent living. Rural poverty on the other hand is characterized by limited formal employment opportunities, limited sources of income, lack of access to goods services this due to limited private and public sector investment. Low Private sector investment is caused by low effective demand due to low population and low incomes in rural areas. Rural areas however guarantee abundant accessible and affordable economic resources such as land, water and forestry which can easily be exploited for income generation that would result in poverty Alleviation.
Having considered the characteristics of both urban and rural poverty it can be seen that while high population in urban areas is a driver to urban poverty, the absence of high population density in rural areas is a driver to rural poverty as it’s absence discourages private sector investment and effective exploitation of abundant economic resources. Therefore by shifting population density to rural areas from urban areas will help in resolving both urban and rural poverty. But how can this shift of population from urban to rural areas be done. The following is my proposal:
1. Decentralization. The current decentralization of government functions must enhanced to ensure that people in rural areas can access all government services in their respective locations without needing to travel to urban areas
2. Government Social support programs such as social cash transfer, framers input program, cash for work etc should be restricted to rural areas. This will motivate people to shift to rural areas. When people shift to rural areas they will not only decongest urban areas but also create effective demand that will attract private sector investment. The population increase in rural areas will also result in effective exploitation of economic resources such as land which will result in rural areas becoming more productive.
3. Establish tax and economic incentives for private sector investment in rural areas. This low cost credit and tax incentives should be established for rural areas to encourage private sector investment.