All government institutions will from now on buy only electric vehicles, President Hakainde Hichilema has announced. He said the change is needed because conflicts abroad have made global fuel supply unstable. Opening the First Session of the 14th National Assembly in Lusaka on…

All government institutions will from now on buy only electric vehicles, President Hakainde Hichilema has announced. He said the change is needed because conflicts abroad have made global fuel supply unstable. Opening the First Session of the 14th National Assembly in Lusaka on Friday, he also confirmed that excise duty on fuel has been restored this month. He said the Energy Regulation Board’s monthly pricing mechanism will be reviewed, adding: “Personally, I don’t like it.”

“This is a fundamental change so that we can reduce the demand side for fuel,” the President told MPs. “Unless it is not practicable, you will have to drive an electric vehicle in Government and public institutions.”

Government will invest in charging infrastructure across the country in partnership with the private sector. Mr Hichilema urged businesses, cooperating partners and citizens to join the move to what he called cleaner, more affordable and self-reliant transport.

Why the tax break ended

The announcement came with a frank account of the past year at the pump. Global conflicts, the President said, feed directly into the price of fuel in Zambia. “As we have often said, instability anywhere is instability everywhere,” he told the House.

To shield motorists, Government had taken what he called unprecedented steps, including temporarily removing taxes on fuel. Those measures assumed that the global market would settle quickly. It did not.

Government has since reviewed its position on fuel tax waivers to protect its spending commitments. The President named four programmes: free education, the Constituency Development Fund, the School Feeding Programme and the Social Cash Transfer. “As a result of this review, excise duty has been restored on fuel this month,” he said.

He promised further measures to keep fuel prices competitive and supply secure.

The pricing formula under review

The ERB’s monthly fuel price review will be looked at again. It is one of the most closely watched announcements in the country, and the President made his own view clear.

“I must say, personally, I don’t like it,” Mr Hichilema said. He added that the issue needs to be addressed “so that we can bring a little bit more stability and a predictable pricing environment in the economy.”

His written address framed the review as part of a wider aim: a secure, predictable and efficient petroleum supply system.

Four pipelines and more depots

On supply, the President said Government will “aggressively” pursue four pipeline projects:

• the Angola–Zambia pipeline
• the Namibia–Zambia refined-petroleum and natural-gas pipelines
• the Tanzania–Zambia multiproduct pipeline
• the Zimbabwe–Zambia pipeline

The aim is to end the country’s reliance on a single supply route. He said the projects would also create jobs, business opportunities and Treasury revenue.

Existing fuel depots in Chipata, Lusaka, Mansa, Mpika, Mongu, Ndola and Solwezi will be put to full use, and new depots will be built in other provinces to increase storage capacity. Government will also strengthen management of the TAZAMA open-access system so that it stays competitive and helps bring down the cost of petroleum products.

The Ministry of Energy has been told to implement the fuel-blending strategy “without delay”. The President said blending will cut the fuel import bill and support the local ethanol industry. Public-private partnerships and joint ventures will be used to speed up all of these projects.

Power for the new fleet

Electric vehicles need electricity, and the President restated his target of 10,000 megawatts of generating capacity. During the first term, he said, Government expanded thermal and solar generation, and the take-up of solar by households and institutions has added to supply.

He said the State cannot close the gap alone. Private and citizen-led investment in generation will be encouraged. The national transmission network will be upgraded, and connecting the grid to regional power pools is now “critical”, with a call for more private participation in transmission and distribution.

One large project is already lined up on the Copperbelt. Mpongwe District is to host a US$519 million solar plant with a capacity of 500 megawatts, to be built by EnerSynk Solar Energy Limited in the Kashitu area under Chieftainess Malembeka.

The plant will cover 615 hectares and be built in three phases over 18 months. District Commissioner Mwambashi Mwitwa said it is expected to create more than 1,000 direct jobs.

“This project will bring massive investment, create jobs for our people and boost our local economy,” Mr Mwitwa said.

The plant will feed into the national grid through the Kabwe–Kitwe 330-kilovolt line and is designed to run for 25 years, reducing reliance on hydropower in dry years. It received approvals from the ERB and the Attorney-General in July. EnerSynk and ZESCO signed a 25-year power purchase agreement on 15 September.

What happens next

The address did not set a date for the ERB review or a timetable for the electric-vehicle rule. It also did not say what happens to vehicles already in the government fleet.

Those details are expected to come through the Ministry of Energy and the 2027 Budget. The President asked the House to support that Budget, saying it will set out how Government intends to finance its development plans.