Business Environment Highlights
New Government in Place
- National elections held in August 2021 ushered in a new government.
- New government announced intentions to anchor economy on private sector.
- This will require an enhanced business environment to attract private capital.
- CEC leveraging improving environment by enhancing engagements with key stakeholders and resolving historical issues.
- Work environment was a mix of remote working and office presence.
- CEC continues to observe and enforce all health guidelines which kept COVID-19 cases at a minimum.
- Vaccination rates currently at circa 35%. CEC continues to encourage employee vaccination.
- All staff now working from the office following further guidelines from the authorities.
Good balance between supply and demand in 2021 due to:
- Improved water levels at country’s main hydro plants.
- Commissioning of about 300MW (2 x 150MW) at Kafue Gorge lower by ZESCO.
- Load curtailment for non-mining customers was almost non-existent.
- Situation continued to improve; country now becoming net exporter of power.
- Key agreements: Negotiations underway.
- Financial profitability: Improved financial performance.
- Litigation – value protection: Higher costs arising from the value protection initiative.
- KCM payment default: Payment default continuing.
- Cash conversion: Improved cash generation.
Priorities and Outlook
- Take advantage of improving business environment to resolve contractual and other key commercial matters aim is to achieve stable operations and focus on strategy implementation.
- Focus on successful delivery of the capital program to support asset modernisation & digitalisation, efficiency improvements and quality growth.
Strengthen Supply Portfolio
- Integrate renewable sources in operations.
- Continue to explore opportunities to offtake fairly priced power from IPPs.
- Actively support and participate in shaping the country’s future electricity market based on open access and economic pricing of services.
Enhanced Relationships / Communication
- Work to enhance relationships with all stakeholders: government, customers, regulators, suppliers, employees, investors and local community, etc.
- Enhance public and investor communication.