On March 15th, Achim Fock, the World Bank Country Manager for Zambia, announced the commencement of the first phase of the National Energy Advancement and Transformation Program (NEAT), accompanied by a grant allocation of $100 million to Zambia.
With a comprehensive budget of $700 million, NEAT is designed to enhance the financial sustainability, reliability, and resilience of Zambia’s electricity sector by 2033. Its objectives include revitalizing Zambia's national power utility, ZESCO, to ensure its long-term sustainability, attract private sector investments, and promote inclusive development across the country. Additionally, the program aims to increase the energy sector's climate resilience by diversifying the energy mix, an essential step toward a sustainable future.
The program will unfold in phases, starting with the initial phase from 2024 to 2026. This phase will utilize the $100 million grant to strengthen ZESCO's financial and operational performance, enhance electrification financing mechanisms, and refine procurement processes for non-hydropower renewable energy projects. Achim Fock highlighted the grant's pivotal role in securing Zambia's sustainable energy future and spurring long-term economic growth.
Aligned with the government's Integrated Resource Plan, NEAT is supported by the strategic plans of ZESCO and the Rural Electrification Authority. Yadviga Semikolenova, the World Bank's Practice Manager for Energy in Eastern and Southern Africa, pointed out the program's ambitious goal to increase renewable energy capacity by 1,458 megawatts. This expansion will diversify Zambia's energy sources and enhance its climate resilience, showcasing a commitment to a greener future.
Furthermore, NEAT is in harmony with Zambia's national energy strategies, including the 8th National Development Plan, Vision 2030, and the National Energy Policy. It also mirrors the World Bank's overarching goals of eliminating extreme poverty and promoting shared prosperity, emphasizing the importance of access to reliable and sustainable energy sources.
In essence, NEAT stands as a cornerstone initiative in Zambia's pursuit of energy security, economic prosperity, and environmental sustainability. With the World Bank's significant support, Zambia is poised to make transformative strides in its energy sector, marking a pivotal moment in its journey towards a more sustainable and resilient energy future.
