By KENNEDY MUPESENI? –
STANBIC Zambia has proposed that Government should provide loan guarantees to enable investors in the energy sector access long term loans from commercial banks.
Stanbic Zambia chief executive officer Charles Mudiwa has said energy sector investment remained stifled due to limited access to financing.
Mr Mudiwa said interested investors in energy cited limited financing as the major obstacle to explore further, the potential in the sector.
He said financing long term projects required guarantees from institutions like Government to minimise risks.?“The Government need to work closely with commercial banks to increase financing to increase access to electricity thereby contributing to economic growth,” he said.
Mr Mudiwa said with Government stepping in as the guarantor, this would not only increase access to financing but also attract increased investment in the energy sector.
He assured stakeholders in the energy sector that recently attended the International Energy Conference in Lusaka during a presentation, that Stanbic was willing, able and ready to make the dream of lighting up Africa from Zambia a reality.
Stanbic recently stated that its loan portfolio to fund energy related projects would reach K2 million by the end of this year.
The energy sector was a key driver in sustainable development as it spearheaded national building projects in the country.?Government should continue collaborating with the private sector to facilitate unlocking of the energy sector by increasing investment.
He added that Zesco had been more attractive than other private companies in the power industry due to guarantees provided to it by Government.
There is also need to come up with forecasts of what increases in power generation the country need to achieve on an annual basis in to ultimately achieve long term targets.
Government was in the process of establishing a stakeholder task-team that would engage and see through the transformation of the energy sector.