CEC Chairman: Hanson Sindowe

Performance update
The macroeconomic environment in Nigeria continued to pose some challenges to the Group’s operations; as well as low commodity prices which impact on our customers’ liquidity and ability to meet their financial obligations. The depreciating Naira resulted in increased foreign exchange risk, translating into a loss of ZMW1.140 million.

Operationally on the Zambian end, the business continued to operate under the partial force majeure under the Bulk Supply Agreement with our main power supplier and the respective Power Supply Agreements with our mine customers. This entails that we can only access 70% of our power requirements from Zambian sources while the rest of our requirements have to be sourced outside of the country. It is expected that this regime will continue until year end. The challenges relating to low commodity prices on the global market have led to some of our customers scaling back on their operations with the effect that our power sales are down by about 16% in Zambia. We expect higher demand to return mid to end 2017 when projects that a number of our customers have been implementing begin to draw power. Further, loss of sales on the Zambian market during this period has been more than made up for through our power sales to the DRC market. In this regard, the business continued to grow on the international power trading segment.

HY 2016 financial results 

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