Zambia, known as Africa’s second-largest copper producer, is currently facing an impending energy crisis that could severely impact its vital mining sector. The state-run electricity utility, Zesco, disclosed on Monday that it is actively seeking to import power to prevent an anticipated energy shortfall that threatens the nation’s economic backbone.
The bulk of Zambia’s electricity, about 86%, is produced through hydropower stations. However, the country’s power generation capacity has been severely affected by a significant drought, exacerbated by the El Niño phenomenon. El Niño involves abnormal warming of the Pacific Ocean waters, leading to increased global temperatures and disrupted weather patterns. As a direct consequence, Zesco anticipates a deficit of around 700 megawatts in power generation for the current year.
In response to this dire situation, Zesco has initiated negotiations to secure additional electricity imports. The utility aims to prioritize distribution to key sectors—mining, agriculture, and manufacturing—to mitigate the potential impact on Zambia’s economy and support sustained growth. While specifics on the amount of power Zesco seeks to import were not disclosed, the urgency of the matter underscores the critical nature of this endeavor.
The looming power crisis comes at a particularly challenging time for the Zambian mining industry, which has already been warned about possible fluctuations in power supply. Last week, Zesco alerted mining companies to prepare for potential disruptions due to diminished generation capabilities. This instability in power supply poses a significant threat to copper production, which is a major economic driver for Zambia.
Copper production in Zambia experienced a decline last year, dropping from 763,000 tons in the previous year to approximately 698,000 tons in 2023, as reported by the country’s mining chamber. This reduction is particularly concerning given the current global market dynamics, where there is an increasing worry over tight supplies potentially restricting refined copper production. Copper is essential for a variety of industries, including power generation and construction, making its stable supply crucial to global economic stability.
The risk to Zambia’s copper output could have far-reaching implications not only for the national economy but also for the global copper market. The potential reduction in output due to power shortages could exacerbate the current supply constraints, impacting prices and availability worldwide.
Zambia’s approach to addressing this crisis involves a delicate balancing act of securing necessary power imports while ensuring the uninterrupted operation of its critical sectors. The success of these efforts will be pivotal in stabilizing the country’s economic outputs and maintaining its position as a key player in the global copper industry.
