MORE POWER, LESS DELAY
Acting Energy Minister calls for faster solar investment and project delivery as 40MW Kafue Solar finally reaches financial close after eight years
By Francis Maingaila ♥️
Lusaka, Zambia24 — 29-09-2026 — Zambia is accelerating investment in solar power as Government moves to reduce the country’s dependence on hydropower and secure reliable electricity for households, businesses and industry.
Acting Minister of Energy Situmbeko Musokotwane said Zambia could no longer afford lengthy delays in delivering new power projects amid growing demand for electricity, describing the eight years taken to bring the 40MW Kafue Solar Project to financial close as unacceptable.
The milestone was formally marked by the signing of the financial close certificate, bringing together Minister of Finance and National Planning Situmbeko Musokotwane, the British High Commissioner, German Ambassador to Zambia Söenke Siemon, representatives of KfW, the Ministry of Energy, Standard Chartered Bank and ZESCO.
The signing marked the completion of the financing arrangements for the 40MW Kafue Solar Project and cleared the way for the project to proceed to construction.
Musokotwane said Zambia needed to shorten project development timelines and make it easier for private investors to participate in expanding the country’s energy capacity.
He said Zambia had reached a point where the private sector must become central to the development of new energy projects if the country was to meet its growing electricity needs.
Musokotwane said the experience of the Kafue project should not be repeated for future investments, arguing that some solar projects should eventually be developed and delivered within six to eight months.
He said the country needed to change the way it approached investment projects and remove unnecessary delays that could discourage investors from bringing capital into Zambia.
“We want money from everywhere in the world to come and invest,” Musokotwane said.
He said Zambia was expected to add about 1,500 megawatts of new generation capacity by the end of 2026 from projects including coal and solar.
Musokotwane said this represented a major shift in Zambia’s energy development, considering that the country had added about 3,000MW of generation capacity over the past 60 years.
He said Zambia’s total installed generation capacity had risen to about 3,100MW, yet the country was now working towards adding another 1,500MW within a single year.
Musokotwane said the rapid expansion was necessary because electricity was no longer simply an energy-sector issue but a foundation for economic activity, investment and job creation.
He said the 2024 drought had exposed the dangers of Zambia’s heavy dependence on hydropower, particularly when water levels fell and the country was unable to generate enough electricity to meet demand.
Musokotwane said the experience had demonstrated the urgency of diversifying the energy mix so that Zambia would not be exposed to the same level of disruption whenever hydrological conditions deteriorated.
He said solar energy offered an important opportunity to strengthen the country’s electricity supply while also creating space for private investors to participate in the sector.
Musokotwane said Government must therefore continue listening to the private sector and understand the challenges investors face when developing projects in Zambia.
He said the same approach should be applied beyond the energy sector, particularly in mining, tourism and manufacturing, where private investment could contribute to economic growth.
Musokotwane said investment in productive sectors could help Government address unemployment and poverty by creating businesses, jobs and economic opportunities.
He, however, stressed that the expansion of investment and economic activity should also benefit vulnerable people and should not leave sections of society behind.
Musokotwane thanked the British High Commission, Standard Chartered Bank, the Get Fit Zambia programme, Globeleq and KfW for their contribution towards bringing the Kafue project to financial close.
Simwaba said the project was the first 40MW solar photovoltaic project under the Get Fit Zambia programme to reach financial close and formed part of a wider 120MW portfolio being developed through the programme.
He said the project would contribute to Government’s broader target of achieving 10,000MW of electricity generation capacity by 2031.
Simwaba explained that Get Fit Zambia had been implemented by the Ministry of Energy in partnership with KfW since 2018, with the programme designed to attract private investment into renewable energy projects through competitive procurement.
He said the competitive process was intended to secure projects that could provide electricity at affordable tariffs while also creating confidence among investors and financiers.
Simwaba said reaching financial close had not been an easy process and required sustained engagement among Government, developers, financiers and cooperating partners.
He said the support provided by development partners, including Germany, the United Kingdom, the African Development Bank and the World Bank, had been important in moving the project forward.
Simwaba said the successful financial close should now provide a foundation for advancing the other projects within the portfolio.
He said the focus should shift from completing the financial arrangements to ensuring that projects progressed to construction and ultimately started supplying electricity to the national grid.
Siemon said the Get Fit programme had mobilised about US$160 million in investment across its portfolio.
He said Germany had supported the programme with a €41 million grant through KfW, while about €8 million in liquidity support had helped catalyse the wider investment.
Siemon said the scale of investment demonstrated how targeted public and development support could help unlock substantially larger amounts of private capital.
He said the Kafue project was particularly significant because it represented the first committed financing for an independent power producer with ZESCO as the off-taker in nearly a decade.
Siemon said the project had also achieved an average tariff of below US$0.06 per kilowatt-hour, demonstrating the potential of competitive procurement to secure affordable renewable electricity.
He said the programme had also helped strengthen institutional capacity and procurement knowledge within the energy sector.
Siemon said the benefits of the partnership were already extending beyond the Kafue project, pointing to another 80MW solar project involving CEC and Innovant.
“Lasting progress is built through partnership,” Siemon said.
Long said reliable electricity would be particularly important as Zambia sought to expand mining, manufacturing and other productive sectors.
He said the project was aligned with Zambia’s ambitions of reaching 10,000MW of generation capacity and producing three million tonnes of copper.
Long said the United Kingdom had worked with partners including British International Investment, FMO, Standard Chartered Bank, Solarcentury and Globeleq to support the project.
He said Zambia would require more projects of a similar nature if it was to achieve its broader economic ambitions under the Grow Zambia agenda.
He said the ultimate benefit was reliable electricity that could give businesses greater confidence to invest and expand, while making Zambian industries more competitive.
Globeleq Business Development Director Simon Le Clech said the Kafue project had taken nearly eight years to reach financial close after it was first bid for in November 2018.
He said the project had been affected by the COVID-19 pandemic, Zambia’s debt crisis and the 2024 drought, as well as difficult conditions in international financial markets.
Le Clech said global developments, including the conflict in the Middle East, oil price pressures, inflation and high interest rates, had also created additional challenges for infrastructure financing.
Despite the difficulties, he said the project had continued moving forward because of the commitment shown by the different parties involved.
Le Clech said the 40MW plant was expected to generate about 123 gigawatt-hours of electricity every year, providing electricity equivalent to the needs of about 200,000 people.
He said the project would also create more than 200 local construction jobs during the construction phase.
Le Clech said construction was expected to begin in the coming days, with the project scheduled to start generating its first electricity in October 2027.
He said Globeleq was also progressing plans for the Lupili Hills solar photovoltaic and battery storage project.
“The story is one of perseverance, resilience and partnership,” Le Clech said.
“Affordable, reliable power is what drives us,” he said.
Le Clech said the experience of the 2024 drought had reinforced the importance of diversifying Zambia’s sources of electricity because relying on one source left the country vulnerable when conditions changed.
ZESCO Managing Director Fitzpatrick Kapepeo said the expansion of renewable energy generation would not be possible without increased private-sector participation.
Kapepeo said about 918MW of solar projects were being pursued, with ZESCO accounting for about 270MW while the larger share was being developed by private-sector players.
He said several signed projects had the potential to contribute more than 10,000MW of additional generation capacity.
Kapepeo said the challenge now was to ensure that projects did not remain on negotiating tables for years but moved systematically through negotiations, power purchase agreements, grid-impact studies, financial close, construction and ultimately commissioning.
“Financial close is the result of people staying at the table and finding a way together,” Kapepeo said.
He said the additional 40MW from Kafue would help diversify Zambia’s energy mix and provide electricity for households, businesses and industry.
Kapepeo said financial close should therefore not be viewed as the end of the project but as a major step towards construction and eventual commissioning.
Standard Chartered Bank Zambia Chief Executive Officer Sonny Zulu said stronger partnerships would remain essential if Zambia was to mobilise the investment required to expand renewable energy.
Zulu said Standard Chartered had used its presence in Zambia and its international network to connect the country with international capital and bring together different players involved in project financing.
He said the bank had supported mechanisms that strengthened payment security and provided the financing framework needed to make major energy projects bankable.
“Parties can work together to create bankable solutions,” Zulu said.
He said Standard Chartered’s role as a connector between clients, investors and capital markets helped create the confidence needed to mobilise investment into projects that could support Zambia’s development.
Zulu said the Kafue project demonstrated the importance of bringing together Government, developers, financiers, development partners and other institutions around a common objective.
The financial close of the 40MW project now clears the way for construction and moves Zambia another step towards expanding solar generation as the country seeks to reduce its vulnerability to hydropower shortages.
For households, businesses and industries, the significance of the project will ultimately be measured by how quickly the promised power reaches the grid and begins supporting economic activity.
Comments
Post a Comment