Factors affecting the implementation of strategic asset management in the state-owned electricity utility company in Zambia

Abstract

Electricity plays a pivotal role in various sectors of every economy such as manufacturing, mining, telecommunication and transportation. It is also a key national resource in the provision of services in hospitals, universities and banks as well as residential areas worldwide. However, power utility companies within Africa, Zambia in particular, are facing numerous challenges related to asset failure in their generation, transmission and distribution systems due to ageing. Ultimately, this has led to power outages or load shedding, lasting 6 to 12 hours a day, in all major mining and industrial cities. In light of the foregoing, the aim of this study was to identify and rank the factors that have affected the implementation of strategic assets management in the state-owned power utility company as well as establishing the root cause of these challenges through qualitative and quantitative methods: in particular, descriptive statistics and content analysis of open-ended questions via inductive and deductive methods. The approach that was taken for this present study involved interviewing senior managers at ZESCO Ltd. Lusaka Division using structured and open-ended questionnaires to probe the respondents on what their views were in relation to asset management by asking strategic questions that focused on the key elements of asset management. In conclusion, the findings of the research revealed that social and cultural (organisational behaviour), the dearth of clear maintenance strategies and asset lifecycle management, Lack of skilled/specialised manpower in asset management, knowledge Management /documenting critical information, lack of policy implementation, non-cost reflective tariffs, Financial (constrained funding for capital projects), Political interference and Regulatory and Statutory compliance are the factors that have been impeding the implementation of strategic asset management in the state-owned power utility company. Further, the root causes of these factors were due to the departmentalized and the highly reactive nature of asset and maintenance management processes and procedures that are used to perform asset management. In addition, it was further revealed that lack of awareness of leadership roles, fragmented information systems and risk management played a role in impeding the implementation of strategic asset management. Also, most of the managers indicated that their training did not prepare them for asset management.