On Tuesday 24 August 2021, his Excellency President Hakainde Hichilema was sworn in as Zambia’s seventh democratically elected president. Following an election heralded as free and fair, the leadership of the People of Zambia was transferred to the opposition and leader of the United Party for National Development (UPND). It is an election dominated by Zambia’s youth who have great hopes and expectations for improved governance, development and employment.
Key messages of President Hakainde Hichilema’s inauguration speech included:
A focus on macro-economic stability promoting growth of the economy, lowering the fiscal deficit, reducing public debt and restoring social and market confidence.
A focus on stable economic and sector policies and key priority sectors namely agriculture, mining, energy, financial services, tourism, technology, health and education. Specifically:
Agriculture – to enhance production, agricultural extension services, market access, value addition and lowering the cost of inputs;
Mining - to increase production, processing and the participation of Zambians in the sector; and
Energy - an ambitious energy investment plan to increase power generation and further broaden the energy mix; and have a conducive policy environment to encourage private investment in generation, transmission, distribution and retail in the sector.
Restoring the rule of law, general order in public places and communities, with zero tolerance to corruption;
Freedom of the press and media;
Removal of political interference in public institutions and parastatals; and
A commitment to:
ensure environmental sustainability and inclusiveness;
mitigate against climate change and strive to build a green economy; and
respect, promote and protect the rights of one another.
The mining sector will be grateful for his intent to increase processing and production and goal of a more stable policy agenda.
The energy sector will be interested in the ambitious energy investment plan encouraging private participation in generation, transmission and distribution. The sector will be keen to find out the details around any potential restructuring of ZESCO and IDC, revitalisation of GETFIT, and the implementation / amendment of the 2019 electricity act which allows for such private participation in the sector. Investors will be keen to know the new key tariff structures from ERB and the implementation of Statutory Instrument 24 (2021) which declares parts of ZESCO transmission and distribution infrastructure specific as a common carrier (e.g. ZESCO transmission or distribution infrastructure that can be used by a third party at an agreed rate).
His statement regarding environmental sustainability, climate change mitigation and striving towards a green economy are welcome. At AESC we look forward to continuing to contribute towards this vision of environmental sustainability and a green economy and congratulate his Excellency President Hakainde Hichilema and the UPND on this historic achievement.