Zambia Reaches Landmark Financial Close on Largest Solar PV Project in Sub-Saharan Africa
Zambia has secured a historic milestone in its energy transition with the financial close of the 100MW Chisamba Solar PV Project, marking the largest grid-connected solar development in the country’s history and the biggest of its kind in sub-Saharan Africa (excluding South Africa).
The project, spearheaded by Kariba North Bank Extension Power Corporation (KNBEPC), a wholly owned subsidiary of ZESCO, received $71.5 million in commercial debt financing from Stanbic Bank Zambia, a member of the Standard Bank Group.
The financing is anchored by a 13-year Power Purchase Agreement (PPA) between KNBEPC and GreenCo Power Services (GreenCo), a leading renewable energy trader in the Southern African Development Community (SADC) region. Under a separate Power Supply Agreement (PSA), GreenCo will supply First Quantum Minerals (FQM) with reliable, renewable power from the project to support critical industrial operations.
The innovative financing structure of the project demonstrates the potential for private-sector off-take agreements to unlock large-scale funding, de-risk project development, and enable successful project delivery without the need for sovereign guarantees or government support.
GreenCo’s arrangement ensures that the solar energy generated by KNBEPC will be integrated into a firm, blended renewable power supply for FQM, with 24/7 reliability through blending solar with other sources from the Southern African Power Pool (SAPP).
“This landmark deal reflects the power of private sector innovation to scale Zambia’s renewable energy capacity without placing strain on the public purse,” said Wezi Gondwe, Managing Director of GreenCo Power Services Zambia. “It shows how commercial design and committed partnerships can drive energy transformation, strengthening the power grid and providing reliable, affordable power to industries like FQM.”
The Chisamba Solar PV Project will inject much-needed clean energy into Zambia’s national transmission system, directly contributing to the alleviation of load shedding and enhancing the country’s energy security. This is particularly critical as Zambia faces challenges stemming from reduced hydropower output. Once operational, the project will supplement Zambia’s energy supply, with the energy contracted to FQM freeing up capacity for ZESCO to deliver power to other Zambian consumers, including residential sectors.
“This project is an important step toward reducing energy deficits and stabilizing the national grid, particularly in light of the ongoing challenges with power supply,” said Engineer Justin Loongo, Managing Director of ZESCO. “The innovative collaboration behind this project offers a model for future energy solutions, one that supports Zambia’s industrial ambitions while ensuring broader public benefits.”
Stanbic Bank Zambia played a pivotal role as the Mandated Lead Arranger and sole lender for the $71.5 million debt financing, affirming their confidence in Zambia’s energy sector and the bankability of large-scale renewable projects.
“Stanbic Bank Zambia is proud to be a part of this historic transaction, which marks the largest renewable project financing in Zambia to date. It underscores our commitment to supporting sustainable infrastructure that drives Zambia’s climate-smart growth,” said Helen Lubamba, Executive Director of Corporate and Investment Banking, Stanbic Bank Zambia.
This project also sets a precedent for the growing role of private-sector players in Zambia’s renewable energy landscape, ensuring a diversified and resilient energy mix. As the largest solar project in Zambia’s history, it contributes significantly to the country’s energy transition goals, aligning with Zambia’s Integrated Resource Plan and international climate commitments.
“This milestone represents an exceptional moment for KNBEPC, ZESCO, and Zambia,” said Eng. Boyd Kanchela, CEO of KNBEPC. “It highlights the power of strong public-private partnerships and demonstrates how local developers can lead in delivering large-scale clean energy solutions.”
