ZCCM-IH Establishes New Energy Investment Vehicle to Drive Renewable Power Rollout
ZCCM Investments Holdings Plc (ZCCM-IH) has announced the incorporation of a Special Purpose Vehicle, Zambia National Energy Corporation Limited (ZNEC), aimed at accelerating investment in renewable energy and strengthening national energy security.
In a transaction announcement approved by the Lusaka Securities Exchange (LuSE) and the Securities and Exchange Commission of Zambia (SEC), ZCCM-IH said ZNEC was incorporated on 12 December 2025 in partnership with the Ministry of Finance and National Planning (MoFNP).
The new entity has been established to undertake energy investments within Zambia, with its first major project being the implementation of the Presidential Constituency Energy Initiative (PCEI), which received Cabinet approval on 24 November 2025.
ZNEC will serve as a dedicated energy investment and delivery vehicle responsible for the full project lifecycle, including feasibility assessments, capital structuring, financing, execution and oversight. The corporation will work closely with government institutions, financial partners, independent power producers and the private sector, while adhering to international best practices in governance, financial management and risk oversight.
Under the PCEI, ZNEC aims to deploy renewable energy solutions across all 156 constituencies, with an estimated 2 megawatts per constituency, translating into a total targeted installed capacity of 312 megawatts.
The total investment cost for the initiative is estimated at USD 202 million, with financing structured at 70 per cent debt (USD 141.4 million) and 30 per cent equity (USD 60.6 million). ZCCM-IH will contribute USD 36.36 million in equity, while MoFNP will contribute USD 24.24 million. Shareholding in ZNEC will stand at 60 per cent for ZCCM-IH and 40 per cent for the Government of the Republic of Zambia through MoFNP.
Based on ZCCM-IH’s market capitalisation as at 12 January 2026, the transaction represents 2.64 per cent of the company’s market value and qualifies as a small related party transaction under LuSE Listing Rules. As such, shareholder approval is not required, subject to the issuance of an independent fairness opinion.
ZCCM-IH disclosed that it has obtained a waiver from LuSE to defer the independent fairness opinion to allow for the procurement of an independent expert in line with the Public Procurement Act. The opinion will be commissioned and made available to shareholders within six months. Should the transaction be deemed unfair, the company will comply with all regulatory requirements, including seeking shareholder approval.
The company said the establishment of ZNEC aligns with its strategic mandate to invest in energy security and renewable energy expansion. Key benefits include increasing Zambia’s renewable generation capacity, improving access to power in underserved areas and creating opportunities for local economic development.
ZCCM-IH has advised shareholders to exercise caution when dealing in the company’s securities following the announcement.
The transaction was issued by order of the board and signed by Company Secretary Charles Mjumphi, with Stockbrokers Zambia Limited acting as sponsoring broker.
