After a heated national debate on justification for continued import and needless bleeding of forex by state owned power utility ZESCO, ZAFFICO has announced that it has invested about K55 million (about $3 million) that will more than double its annual production.
In a statement made available to the Zambian Business Times – ZBT, ZAFFICO public relations manager Ireen Chipili stated that “in order to meet the current and growing demand for treated poles in the country, the Zambia Forestry and Forest Industries Corporation (ZAFFICO) has invested K55 million into an additional creosote treatment line and a wooden pole drying kiln”.
ZAFFICO further confirms that this investment will more than double the output and increase production levels of creosote poles from the current 70,000 to 160,000 poles per annum representing a percentage production increment of 128%. The set up of this plant is already in motion and that the contracts for the design, supply, delivery, installation and commissioning of the kiln and creosote treatment line has since been awarded.
Power utility ZESCO had issued a public tender to award contracts to foreign firms to import wooden poles which brought concerns by experts and members of the public as to why the need to import and needlessly lose forex when Zambia has enough wood pole resources and supply volumes readily available in-country.
There were counter accusations between ZAFFICO and ZESCO, with ZESCO accusing ZAFFICO of having backlog of orders and failing to meet the utility’s demand while ZAFFICO argued that it was the lack of order planning, coordination and timing that led to miss- match of deliveries. However, it’s good to note that millions of dollars will now be saved as the two firms are now reported to have normalized their working relations and order planning.
It remains to be seen if ZESCO will still go ahead to import wooden poles in 2024 as ZAFFICO has confirmed that the new expanded Plant is expected to be commissioned in October 2023. ZESCO announced an ambitious plan to clear its backlog of household electricity connections as well as connect more businesses and households to the national grid.
The Rural Electrification Authority – REA has also been heavily funded under the 2023 national budget which should also add to the demand for wooden poles as more rural households get connected. This demand can also be met as new plantations have been added to secure resources to meet ever growing future demand.