Zambian manufacturers protest renewal of emergency power tariffs, enforcement of Rating Act

The Zambia Association of Manufacturers (ZAM) has expressed worry over the recent renewal of emergency electricity tariffs, describing the move as unsettling and poorly timed for the industrial sector.

ZAM President, Ashu Sagar, stated that the decision—made without consultation—had disrupted pricing structures for manufacturers already grappling with high production costs and energy insecurity.

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Speaking at a media briefing to launch this year’s manufacturers month in Lusaka, Sagar said the tariff, initially introduced to cover imported power, appears no longer justified given improvements in hydroelectric generation and the rollout of solar installations.

“The lack of dialogue and transparency surrounding the renewal has shaken business confidence, particularly among manufacturers who rely heavily on consistent energy pricing to maintain operations,” he said.

Sagar urged the Energy Regulation Board and ZESCO to engage more proactively with industry stakeholders before implementing such cost-altering measures, warning that sudden changes “further erode margins and weaken productivity.”

Meanwhile, the ZAM President also raised concerns over the recent implementation of the Rating Act by local councils, which now includes machinery valuations as part of business rates.

He said the move had placed a new financial burden on manufacturers, already navigating high production costs and complex licensing processes.

“Valuing machinery as part of property rates undermines affordability and growth, this approach directly impacts our ability to keep prices low and reinvest in productivity,” Sagar stated.

He noted that the Rating Act, which had been dormant since 2018, was recently enforced without sufficient engagement with industry stakeholders.

Sagar called for an urgent review of the Act, citing its negative impact not just on large manufacturers, but also on small and medium-sized enterprises (SMEs), which he described as “already overburdened by multiple fees and licenses.”

“Such reforms are critical if Zambia’s manufacturing sector is to remain competitive and fulfil its role in driving inclusive economic development,” he said.

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