LUSAKA (Reuters) – The European Union (EU) has given Zambia about $69 million to expand electricity supply in the continent’s second biggest copper producer, which faces a power deficit that has hit mining and agriculture.

In a statement, the EU said the grant would fund projects to provide access to reliable and affordable electricity to at least 63,000 households and small businesses.

The southern African nation is struggling to maintain power supplies as a severe drought has caused levels to drop in the Kariba Dam which generates much of the nation’s electricity.

The economy grew just over 3 percent last year, partly due to power shortages.

($1 = 0.9438 euros)

(Writing by Mfuneko Toyana; Editing by James Macharia)