500MW Solar Tops Zambia–SGC Talks

Government links proposal to drought response and CDF programmes

By Francis Maingaila ♥️ 

Lusaka, Zambia24 — (09-02-2026) — A proposed 500-megawatt solar power project dominated discussions between the Zambian government and Dubai-based SGC Investment LLC, as both sides opened talks on large-scale renewable energy, waste-to-energy and infrastructure investments aimed at strengthening the country’s resilience following the worst drought in its history.

Local Government and Rural Development Minister Gift Sialubalo said the solar proposal directly aligns with government interventions responding to the 2024–2025 drought, which severely affected power generation, water supply and livelihoods across Zambia.

Sialubalo disclosed that about US$200 million has been set aside through the Constituency Development Fund (CDF) to mitigate the effects of the drought and support development initiatives.

He noted that the proposed solar investment could be integrated into existing programmes, particularly in rural and underserved areas.

“We are open to engagement beyond what has already been mentioned. Our responsibilities include decentralisation, democratic local governance, accountability and support to local authorities,” Sialubalo said, welcoming the SGC delegation and encouraging investments that respond directly to local development needs.

Beyond energy, the minister identified waste management as a critical urban challenge and a potential investment opportunity. 

He said Lusaka generates approximately 1,200 tonnes of waste per day, yet only about 40 percent is recycled or economically utilised, leaving large volumes accumulated at the Chunga dumpsite.

Sialubalo said the waste backlog presents a strong case for waste-to-energy projects, which could simultaneously address environmental risks and contribute to electricity generation.

He further outlined priority infrastructure gaps under local authorities, including water and sanitation, refuse removal, street lighting, building control systems and policy formulation, and called for technical cooperation in revenue generation, equipment supply and skills transfer to strengthen local government capacity.

In response, SGC Investment LLC Chief Investment Officer Muhammad Omar Farooqi said the firm was keen to partner with Zambia, citing strong alignment with its renewable energy and infrastructure ambitions.

Farooqi said SGC has operated for 15 years, with a strategic focus on Africa over the past three years, and combines project financing with financial systems development. 

He revealed that the company has recently acquired a bank in Cameroon and is pursuing additional acquisitions, including Prime Financial Industrial Bank in Canada, to support its investment model.

He explained that SGC offers interest-free, profit-sharing financing, in which the firm assumes project risk rather than charging fixed interest, supported by strict compliance requirements, technical studies and credible partners.

“We work through 100 percent foreign direct investment or public-private partnerships, depending on the project,” Farooqi said.

He added that SGC’s priority sectors include solar energy, data centres, artificial intelligence, smart city infrastructure and waste-to-energy.

Farooqi said the immediate next step would be the signing of a Memorandum of Understanding (MoU) to enable information sharing and project evaluation, with solar energy identified as the first priority investment.

Shaikh Essa Bin Abdullah Al Muala said the company was ready to move quickly.

“We are ready to sign an MoU and begin work immediately. We do not want to waste time, and we are eager to work in this country,” he said.

If concluded, the proposed 500MW solar project would rank among Zambia’s largest private renewable energy investments, with potential spill-over benefits in waste management, infrastructure development and local government service delivery.