By Cecilia Chiluba/Zambia/Lusaka
An Energy Expert has urged the Zambian Government to take decisive action by reassessing its trade and energy policies with China.
This follows China’s decision to abolish Value Added Tax (VAT) exemptions and export rebates on renewable energy technologies, which could negatively affect Zambia’s clean energy ambitions if the country fails to respond proactively.
China announced that the policy, which takes effect on April 1, 2026, will apply to renewable energy exports such as solar panels.
Reflecting on the announcement, Energy Expert Eng. Bornface Zulu emphasized the need for Zambia to negotiate targeted incentives or bilateral arrangements aimed at cushioning the effects of higher renewable technology prices.
Eng. Zulu warned that China’s decision is expected to increase production costs for Chinese manufacturers, with the additional costs likely to be passed on to importing countries.
He noted that the decision exposes Zambia’s vulnerability due to its heavy reliance on imported renewable energy technologies, particularly from China.
“For Zambia, where households and businesses already struggle with high energy costs, this move threatens to widen the affordability gap and slow down our adoption of clean energy.”
“This should be a wake-up call. Zambia cannot continue to rely on imported, processed equipment when we sit on some of the richest mineral deposits in the world, Eng. Zulu stated.
He observed that Zambia and the Democratic Republic of Congo (DRC), hold nearly 30% of the global reserves of critical minerals needed for renewable energy technologies—cobalt, copper, lithium, uranium, zinc, and iron.
According to the Energy Expert, this positions both countries not just as suppliers of raw materials, but as potential global powerhouses in energy industrialization.
“Yet, despite this abundance, Zambia has not developed meaningful industries to process these minerals. We remain locked in a cycle of exporting raw materials and importing finished products at premium costs. This dependency leaves us vulnerable to external shocks, sanctions, and policy shifts like China’s VAT abolition,” he said.
“If we do not act, we risk being bullied on the global stage—forced to accept unfavorable trade terms, excluded from strategic partnerships, and deprived of the economic benefits that should rightfully be ours.”
He also called for the diversification of supply chains, encouraging Zambia to engage renewable technology partners beyond China, including the United States, Europe, and the Middle East, to reduce reliance on a single market.
Eng. Zulu further stressed the need to promote local manufacturing capacity by investing in industries that process Zambia’s mineral resources into renewable energy components.
“Invest in industries that process our own minerals and produce renewable components domestically. This will lower costs, create jobs, and strengthen energy security,” he said.
He also highlighted the importance of regional cooperation, urging Zambia to work through regional bodies such as the Southern African Development Community (SADC) and the African Union to strengthen collective bargaining power, pool resources, and invest in shared renewable energy infrastructure.
“We must realign our trade policies, industrial strategies, and diplomatic engagements to ensure that future generations inherit a resilient, diversified, and prosperous energy sector,” Eng. Zulu emphasized.
