Government seeks private sector investment as Zambia revs up for electric vehicles

WHILE the globe, including Zambia has not been spared from skyrocketing fuel prices, Government has created a favourable environment to entice the private sector to invest in electric vehicles (EVs) as a sustainable solution.

“We are putting sustainability at the center of our policy design and implementation,” said Ministry of Commerce, Trade, and Industry director Chibwe Chisala.

“This includes creating policies that are conducive for the importation and production of electric vehicles.”

The government is taking several steps to encourage EV adoption.

Dr. Chisala highlighted the implementation of an import waiver on electric vehicles, making them more affordable for consumers.

“We have also established various economic zones, such as the Lusaka South and Chibombo South Economic Zones, specifically designed to attract and encourage investments in the EV sector,” Dr Chisala explained.

These zones offer businesses incentives like simplified processes for setting up operations, including electric vehicle battery manufacturing.

“As a private sector entity, you don’t have to labour so much to enter the said special economic zones,” Dr. Chisala said.

“You simply bring your machinery and start producing.”

Zambia is also looking beyond its borders for collaboration. Dr. Chisala revealed a partnership with the Democratic Republic of Congo (DRC) to leverage their vast cobalt reserves, which account for over 70 percent of the global supply.

“We have identified land between Zambia and Congo for a trans-boundary project in manufacturing electric vehicle batteries,” Dr. Chisala confirmed.

This joint venture aims to add value to raw materials and integrate both countries into the global EV value chain.

By fostering a favorable business environment and pursuing strategic partnerships, the Zambian government hopes to drive economic growth and technological advancement in the region.

Dr. Chisala emphasised: “We expect companies to start producing batteries soon,” highlighting the potential for a swift transition to a more sustainable transportation future.

By Elesani Phiri

Kalemba May 21, 2024