A World Bank-backed initiative, the Zambia-Tanzania Interconnector Project (ZTIP), is set to provide Zambia with enhanced access to sustainable and affordable energy. The project aims to strengthen the power transmission capacity between Zambia and Tanzania, thus facilitating increased electricity trade across Southern Africa.
The ZTIP, valued at $292 million, is expected to benefit both current and future electricity users in Zambia and throughout the Southern African region. By improving the security of supply, it has the potential to reduce service costs. Additionally, rural areas will gain better access to electricity, which could enhance education and health services, increase productivity, and promote business growth.
"The power sector in Zambia faces significant financial viability issues, hindering economic growth. Through the ZTIP, the World Bank will partner with Zambia to increase power transmission capacity between Zambia and Tanzania, and therefore between East and Southern Africa," stated Achim Fock, World Bank Country Manager for Zambia.
This project forms part of the World Bank’s Regional Energy Transmission, Trade, and Decarbonization-Southern Africa-Multiphase Programmatic Approach (RETRADE-SA MPA). The program aims to boost power trade and climate resilience while supporting low-carbon development within the Southern African Power Pool (SAPP).
The financing for ZTIP includes a grant totaling $292 million: $245 million from the International Development Association (IDA), $17 million from the United Kingdom Foreign Commonwealth & Development Office (FCDO) through Energy Sector Management Assistance Program (ESMAP), and $30 million from the European Union (EU).
"ZTIP transmission line will transform Africa’s energy markets as it will complete the last part of the transmission corridor that connects the Eastern Africa Power Pool (EAPP) and Southern African Power Pool (SAPP), creating the largest geographic energy market in the world—from Cape Town to Cairo — to lower electricity costs across the entire region," commented Yadviga Semikolenova, Energy Practice Manager for Eastern and Southern Africa. "For Zambia, it will strengthen its resilience to climate shocks and reinforce the Zambian transmission system required to enable new renewable energy generation projects and expansion of access."
Zambia's reliance on hydropower makes diverse electricity sources crucial. With ZTIP's implementation of a 330 kilovolt line for planned generation projects, ZESCO—the primary electricity supplier—will benefit from an enhanced transmission backbone.