- Africa GreenCo and Serenje Energy have signed a Heads of Terms for a 20-year Power Purchase Agreement (PPA) to develop 25MW Lusanje Solar project in Zambia’s Lusaka South Multi-Facility Economic Zone.
“Once operational, the project will deliver clean, reliable electricity into Zambia’s grid — supporting industrial growth, improving supply security, and strengthening resilience for both households and businesses,” Africa GreenCo said in a statement.
The deal signals Zambia’s growing ability to attract private sector investment without sovereign guarantees, reinforcing confidence among international investors in the country’s ongoing power sector reforms.
Towards the end of last year, Africa GreenCo Group (GreenCo) through its newly incorporated Zambian subsidiary GreenCo Finance Solutions Limited (GreenCo FinanceCo), signed a USD 55.5 million Facilities Agreement with Stanbic Bank Zambia and the Standard Bank of South Africa Limited (acting through its Corporate and Investment Banking division), to finance power imports and alleviate Zambia’s energy crisis.
GreenCo FinanceCo will use the facilities to prepay for over 130MW of electricity imports during the current energy crisis, alleviating the financial pressure on its clients to prepay for the power they need. The requirement to prepay for electricity has been a significant financial constraint on offtakers in Zambia. This strategic collaboration would not have been possible without the cooperation and support of Zambia’s national utility, ZESCO, and comes at a crucial time as Zambia faces a prolonged electricity crisis caused by the ongoing drought, which has significantly reduced hydropower generation.
Author: Bryan Groenendaal
