- Title
- Renewable energy project financing for economic growth and development: the case of Zambia
- Creator
- Banda, Zondwayo
- Subject
- Renewable energy sources -- Economic aspects -- Zambia
- Subject
- Energy industries -- Zambia -- Finance Economic development -- Zambia
- Date Issued
- 2018
- Date
- 2018
- Type
- Thesis
- Type
- Masters
- Type
- MPhil
- Identifier
- http://hdl.handle.net/10948/21527
- Identifier
- vital:29533
- Description
- Energy is a critical component for the economic growth and development of developing countries. In particular Zambia’s economy requires energy in order to contribute to the reduction of poverty and inequalities in income and gender. Zambia faces an energy deficit which is compounded by lack of adequate financing and low electricity tariffs. The current energy deficit can challenge the achievement of such goals by Zambia. The aim of this research was to explore the impact of renewable energy project financing on Zambia’s economic growth and development. The mixed research methods through the use of questionnaires and interviews were used in achieving the research aim and objectives. In addition primary and secondary data were used as data sources for this research study. The current energy deficit in Zambia has negatively affected all the sectors in Zambia. In order to address the energy deficit, investments in the energy sector particularly through the use of project finance are required as such investments have the potential to improve energy generation, distribution and supply. Zambia has many sources of renewable energy such as solar, wind, hydro, biomass and geothermal making renewable energy project financing as the potential energy source to plug the energy deficit. By extension investments in renewable energy provide an opportunity for investors to expand their businesses and recoup their investments with high returns. Thus many sectors such as health, education, agriculture and service among others would benefit from the increased energy supply thereby improving their operations and spurring economic activities. Furthermore, renewable energy would improve access to energy in both urban and rural areas where electrification rates are as low as 25% and 3% respectively. Despite such positive impacts of renewable energy project the following account for the negative impacts: Externalisation of profits by investors; and, Over dependence on hydro-power. As energy is critical for economic growth and development of Zambia the major recommendations include the following: Seizing Project Finance Opportunities – with the abundance renewable energy resources such as solar, wind, geothermal and biomass, project finance in the form of debt and equity can be utilised to develop and implement renewable energy projects in order to improve energy generation, supply and distribution; Accelerating Renewable Energy Projects - Given the positive impacts of renewable energy project financing on economic growth and development in Zambia, renewable energy projects should be accelerated to result in increased economic growth and development; Removal of Red Tape - The government should reduce the red tape to ensure attraction of investments and implementation of renewable energy projects. Removal of red tape can accelerate investments and implementation of renewable energy projects as was the case in Kenya; Raising Awareness on Renewable Energy Benefits - Making investors and citizens aware (through investment forums and government websites) about the benefits of renewable energy would attract investors but would also allow local people to participate in the implementation of renewable energy projects. Further research – As this research involved organisations and participants in Lusaka province further research involving more participants and organisations outside Lusaka province is required to improve the research results. In addition further research is required to be conducted during reduced levels of energy deficits to improve research results. In this regard the recommendations are aimed at improving energy generation, distribution and supply so as to contribute to the economic growth and development of Zambia.
- Format
- xiii, 176 leaves
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela University
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