By Jane Chanda
Economic analyst Yusuf Dodia says Zambia’s experiment with privatised energy has been a costly failure, driving up electricity costs for consumers instead of delivering promised benefits.
He said the commercialisation of the energy sector, initiated years ago, had only served to line the pockets of private investors at the expense of ordinary Zambians.
Speaking in an interview with Daily Revelation yesterday, Dodia argued that energy was too critical to the country’s development to be treated as a profit-driven business venture.
He pointed out that in economies where growth had been sustained, energy was typically state-owned, emphasising its role as a developmental investment rather than a commercial product.
“The privatisation of energy has not served the Zambian people well,” Dodia said. “It’s time for the government to reconsider its energy policy and explore alternative models that prioritise the needs of citizens over corporate profits.”
Dodia also drew parallels between state-led energy management and Zambia’s provision of free education and healthcare, describing these as nation-building activities that should not be driven by profit motives.
He warned that the continued privatisation of energy would only exacerbate the country’s economic challenges, including its reliance on copper exports and vulnerability to external shocks.
Asked about the implications of Zambia’s energy policy on its manufacturing sector, Dodia noted that the high cost of electricity was driving industries to relocate to countries with more favorable energy policies.
“Countries in Europe that commercialised their energy sectors are now regretting it, as it has led to the collapse of their manufacturing industries,” he said.
He urged the government to reflect on these issues and consider a policy shift as the country moved into 2025.
On the need for a revised energy policy, Dodia said, “Zambia needs to generate a strong and effective energy policy that will help the country overcome its energy challenges and ensure sustainable economic growth in the long run.”
He cautioned that loadshedding cut national productivity by 50 percent and called for increased investment in power generation to support economic growth.
Dodia said he believed that a revised energy policy should prioritise the needs of Zambian citizens and businesses over corporate profits.
“Energy is a catalyst for economic development, and it’s time for Zambia to treat it as such,” said Dodia.
