2026 03 17 CEC 2025 Integrated Annual Report.pdf
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CEC 2025 Integrated Annual Report
LETTER FROM THE CHAIRPERSON
On behalf of the Board of CEC, I am pleased to present our 2025 Integrated Annual Report.
As we approach the final stretch of our five-year strategic period up to 2027, the Board is encouraged by the steady business growth that the Group continues to make in delivering on its strategy, notwithstanding a complex and evolving operating environment.
Operating Environment and Strategic Progress
The year under review was marked by constrained power availability and transmission capacity in Zambia and the wider region. Within this context, CEC demonstrated resilience and agility, adapting its operating model and investment priorities to navigate these challenges while continuing to create sustainable value.
Our strategy has continued to deliver positive outcomes across our markets of operation, reinforcing our positioning as a reliable energy partner to mining, industry, and other key sectors.
The reforms announced by the Zambian Government for Zambia's energy sector during the year present meaningful opportunities for the Group. These include duty relief on equipment required for electricity transmission and distribution, the extension of VAT refund claims on hydroelectric power generation from seven to 10 years, exemptions for the transmission, distribution, and trading of electricity under the currency regulations, and the ongoing implementation of the Open Access framework. Collectively, these reforms enhance the operating environment and support the Group's growth and investment ambitions. As the sector continues to evolve, we will continue to refine and strengthen our strategy to cement CEC's role as a regional energy partner of choice.
Shareholder Value and Market Confidence
Our commitment to creating value for our stakeholders - particularly our shareholders remained unwavering. This was demonstrated through an increased dividend payout of 5.4% over 2024. We remain firmly focused on delivering lasting value through disciplined execution of our strategy.
In 2025, the Group achieved a significant milestone by becoming the first locally listed company on the LuSE to attain a market capitalisation of US$ 1 billion, alongside an all-time high share price of ZMW 25.80.
We believe these achievements underscore the continued confidence of shareholders and investors in the Group's strategic direction, governance and future growth prospects.
Sustainability and ESG Commitments
Sustainability and responsible growth remain central to our strategic agenda. We continued to make strong progress on our ESG commitments, most notably through the advancement of our renewable energy projects. During the year, substantial headway was made in the development of the 136 MW Itimpi II power plant and the 12 MW Fitula Solar Plant, both of which are expected to be commissioned in 2026. These investments reinforce our transition towards cleaner energy solutions and our ambition to support regional energy security in a sustainable manner.
Financial Performance
The Group's financial performance for the year ended 31 December 2025 reflects the resilience of our business model. We recorded strong growth in both revenue and profitability, with increases of 30% and 31% respectively, supported by disciplined cost management and the prudent management of impairments. These results demonstrate the robustness of the Group and the effectiveness of the execution of our strategy.
Community Investment
As a partner not only to mining and other industries, but also to the communities in which we operate, CEC remains committed to building and sustaining its social licence to operate. Our social investment programmes continued to make a meaningful impact, with health initiatives taking centre stage during the year. Key projects included the commencement of the construction of a maternity annex at Luongo Clinic in Garneton, Kitwe, and the upgrading of the Outpatient Department at Mpongwe Mission Hospital. The Group's total investment towards Corporate Social Responsibility Initiatives for 2025 amounted to US$ 3.0 million.
Governance and Board Changes
Strong governance remains a cornerstone of the Group's success. The Board continues to uphold the principles of transparency, accountability and ethical conduct, which enable effective oversight of strategy execution, investments, risk management and employee welfare. These governance structures remain critical to sustaining stakeholder trust and long-term value creation.
During the year, we bade farewell to two Directors, Mr Christopher Mubemba and Mr Hastings Mtine, who retired from the Board on 28 February 2025 and 26 November 2025, respectively. On behalf of the Board, I extend our sincere appreciation for their valuable contributions and dedicated service. We are pleased to welcome Ms Prisca Chikwashi to the Board and look forward to her meaningful contribution to the Group.
Looking Ahead
As we look to the future, we are excited by the growth phase the Group is entering and the opportunities that lie ahead as we align with reforms in the local energy market, advance our renewable energy ambitions, and expand our footprint across the region.
The Board considers the Group's performance during the year to be commendable and reflective of steady strategic progress. As we advance our strategy, we remain focused on fostering continuous innovation, enabling sustained growth, and delivering long-term value.
Conclusion
On behalf of the Board, I extend my sincere appreciation to the Management and staff of the Group for their dedication and professionalism. I also thank our investors and shareholders for their continued confidence in our business and strategic focus. We look forward to another year of progress and success.
LONDON MWAFULILWA
Board Chairperson
CEC 2025 Integrated Annual Report
LETTER FROM THE CHAIRPERSON
On behalf of the Board of CEC, I am pleased to present our 2025 Integrated Annual Report.
As we approach the final stretch of our five-year strategic period up to 2027, the Board is encouraged by the steady business growth that the Group continues to make in delivering on its strategy, notwithstanding a complex and evolving operating environment.
Operating Environment and Strategic Progress
The year under review was marked by constrained power availability and transmission capacity in Zambia and the wider region. Within this context, CEC demonstrated resilience and agility, adapting its operating model and investment priorities to navigate these challenges while continuing to create sustainable value.
Our strategy has continued to deliver positive outcomes across our markets of operation, reinforcing our positioning as a reliable energy partner to mining, industry, and other key sectors.
The reforms announced by the Zambian Government for Zambia's energy sector during the year present meaningful opportunities for the Group. These include duty relief on equipment required for electricity transmission and distribution, the extension of VAT refund claims on hydroelectric power generation from seven to 10 years, exemptions for the transmission, distribution, and trading of electricity under the currency regulations, and the ongoing implementation of the Open Access framework. Collectively, these reforms enhance the operating environment and support the Group's growth and investment ambitions. As the sector continues to evolve, we will continue to refine and strengthen our strategy to cement CEC's role as a regional energy partner of choice.
Shareholder Value and Market Confidence
Our commitment to creating value for our stakeholders - particularly our shareholders remained unwavering. This was demonstrated through an increased dividend payout of 5.4% over 2024. We remain firmly focused on delivering lasting value through disciplined execution of our strategy.
In 2025, the Group achieved a significant milestone by becoming the first locally listed company on the LuSE to attain a market capitalisation of US$ 1 billion, alongside an all-time high share price of ZMW 25.80.
We believe these achievements underscore the continued confidence of shareholders and investors in the Group's strategic direction, governance and future growth prospects.
Sustainability and ESG Commitments
Sustainability and responsible growth remain central to our strategic agenda. We continued to make strong progress on our ESG commitments, most notably through the advancement of our renewable energy projects. During the year, substantial headway was made in the development of the 136 MW Itimpi II power plant and the 12 MW Fitula Solar Plant, both of which are expected to be commissioned in 2026. These investments reinforce our transition towards cleaner energy solutions and our ambition to support regional energy security in a sustainable manner.
Financial Performance
The Group's financial performance for the year ended 31 December 2025 reflects the resilience of our business model. We recorded strong growth in both revenue and profitability, with increases of 30% and 31% respectively, supported by disciplined cost management and the prudent management of impairments. These results demonstrate the robustness of the Group and the effectiveness of the execution of our strategy.
Community Investment
As a partner not only to mining and other industries, but also to the communities in which we operate, CEC remains committed to building and sustaining its social licence to operate. Our social investment programmes continued to make a meaningful impact, with health initiatives taking centre stage during the year. Key projects included the commencement of the construction of a maternity annex at Luongo Clinic in Garneton, Kitwe, and the upgrading of the Outpatient Department at Mpongwe Mission Hospital. The Group's total investment towards Corporate Social Responsibility Initiatives for 2025 amounted to US$ 3.0 million.
Governance and Board Changes
Strong governance remains a cornerstone of the Group's success. The Board continues to uphold the principles of transparency, accountability and ethical conduct, which enable effective oversight of strategy execution, investments, risk management and employee welfare. These governance structures remain critical to sustaining stakeholder trust and long-term value creation.
During the year, we bade farewell to two Directors, Mr Christopher Mubemba and Mr Hastings Mtine, who retired from the Board on 28 February 2025 and 26 November 2025, respectively. On behalf of the Board, I extend our sincere appreciation for their valuable contributions and dedicated service. We are pleased to welcome Ms Prisca Chikwashi to the Board and look forward to her meaningful contribution to the Group.
Looking Ahead
As we look to the future, we are excited by the growth phase the Group is entering and the opportunities that lie ahead as we align with reforms in the local energy market, advance our renewable energy ambitions, and expand our footprint across the region.
The Board considers the Group's performance during the year to be commendable and reflective of steady strategic progress. As we advance our strategy, we remain focused on fostering continuous innovation, enabling sustained growth, and delivering long-term value.
Conclusion
On behalf of the Board, I extend my sincere appreciation to the Management and staff of the Group for their dedication and professionalism. I also thank our investors and shareholders for their continued confidence in our business and strategic focus. We look forward to another year of progress and success.
LONDON MWAFULILWA
Board Chairperson
Membre d'honneur
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