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The document reviews how Independent Power Producers have been used across Sub-Saharan Africa to expand electricity generation and reduce fiscal pressure on governments. It highlights that successful IPP programs depend on a stable regulatory framework, transparent procurement, predictable tariffs and strong institutions. The study notes that weak governance, political interference and poor utility creditworthiness often undermine IPP performance. It also draws lessons from countries like Kenya and South Africa, where competitive procurement and cost-reflective tariffs improved outcomes. For Zambia, the paper recommends clearer policies, improved ZESCO financial health and competitive bidding to attract sustainable private investment in the power sector.

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Policy Monitoring and Research Centre

PMRC is a Zambian policy think tank that conducts research, provides analysis, and advises the Government and stakeholders on economic and social issues. Its work focuses on...

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ENERGY POLICY REFORM INDEPENDENT POWER PRODUCERS AND POWER SECTOR REFORM: SOME LESSONS FROM COMPARATIVE EXPERIENCE IN SUB-SAHARAN AFRICA