China firm to spend $400m on Zambia power project

Sino Hydro of China will spend $400-million to expand the Kariba North Bank power station, part of Zambia’s broader expansions to meet rising demand from the country’s vast copper and cobalt mines.

Under the deal, 85% of the money will be provided by Exim Bank of China, the state-owned Times of Zambia quoted Commerce and Trade Minister Felix Mutati as saying.

Mutati said the expansion would start in October but he did not indicate when the project would be completed.

”Sino Hydro of China next month will start the power-generation expansion programme at Kariba North Bank power station,” Mutati said.

”The Chinese company will invest $400-million in the project and 85% of the investment will come from China Exim Bank,” Mutati told the newspaper.

Sino Hydro chairperson Huang Boadong said on state-run ZNBC radio that the expansion of the Kariba North Bank power station would comprise installation of two generators with a total capacity of 360MW of power.

Huang said the project, which was initially expected to last four years, could be concluded six months ahead of schedule.

State power utility Zesco has previously said the Kariba North bank power station, which currently generates about 600MW of electric power, would be expanded to 900MW or more.

Zesco has also said it would provide 15% of the expansion budget.

Resource-hungry Chinese firms have shown major interest to invest in Zambia, expanding copper and cobalt mining industry — the country’s economic lifeblood — and manufacturing, after authorities created the Chambishi tax-free economic zone.

China has pledged to invest a total of $900-million at the Chambishi multifacility economic zone, where its firms are exempted from paying taxes, including customs duty on imported machinery and equipment. — Thomson Reuters

We make it make sense

If this story helped you navigate your world, subscribe to the M&G today for just R30 for the first three months

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.”

Related stories


Already a subscriber? Sign in here


Latest stories

Spaza shops take centre stage in township economy

Consumers living in such areas are spending more at spazas than big retailers, according to a report

PODCAST| Monkeypox: How it spreads, when to test and why...

The smallpox vaccine provides 85% protection against infection with monkeypox, but South Africa stopped vaccinating people against smallpox in 1980

Nike x Jacquemus collab: What to expect

The Nike x Jacquemus collaboration drops on Tuesday 28 June online. So far, no ludicrously tiny handbags in sight, but luxurious feminine twists on activewear that make this the collection you didn’t know you needed

Test cricket is dead, but not for the eager Proteas

Even before the demise of this format of the game was predicted, the women’s team had little opportunity to experience and enjoy it

press releases

Loading latest Press Releases…