Zambia's hydro-electric power potential regional asset

The EIB director for southern Africa David White was quoted as saying here that EIB is considering investing in Zambia's energy sector.

"There is a lot of potential in Zambia's energy sector and the country's hydro-electric power is considered to be a regional asset that must be utilized fully, so very soon we will be having discussions with World Bank and ZESCO (Zambia's electric company) with possibilities of investing in the sector," said White.

Zambia's water resources accounts for 25 percent of all those in southern Africa.

He said that Africa has been deprived of normal business environment because of higher interest rates and lack of long term financing.

"We are trying to assist local financial institutions to put in place procedures that will result in lending funds for long-term projects since short term borrowing does not help at all," he said.

White said they were also looking in the areas such as mining and tourism because there is also some potential that needs to be explored in the southern African country.