Zambia’s Zesco looks to expand but bond plans unsettle IMF

Zesco has drawn up plans to spend some $5bn over the next five years to expand its generation, transmission and distribution infrastructure and is now looking at ways to raise funds. But donor concerns are being raised about the sustainability of Zambia’s debt burden. Years of underinvestment in the power sector mean generation, transmission and distribution infrastructure has not kept pace with rising demand. State utility Zesco plans to spend an estimated $660m from its balance sheet this year to upgrade and expand power facilities, and a further 26.4bn kwacha ($4.7bn) over the next five years.