• Government will be deliberate in implementing electricity sector reforms.
• GreenCo’s entry on Zambia’s electricity market signifies government’s efforts to create a conducive environment.
• US$15.5 Million was raised for this project.

Minister of Energy says government will be deliberate in implementing electricity sector reforms which will address vulnerability of the sector in view of the effects of climate change.
Officiating at the launch of Africa GreenCo, an alternative off-taker for renewable energy in Zambia, Peter Kapala said the electricity reforms will also address difficulties in raising financial resources to implement infrastructure projects in a timely manner as well as non-cost reflective electricity tariffs which may not allow for cost recovery and hence act as a barrier to investment.
Engineer Kapala stated that GreenCo’s entry on Zambia’s electricity market signifies government’s efforts to create a conducive environment aimed at attracting private investments.
“Following the enactment of the 2019 Energy sector legal framework, Africa GreenCo has been the first Renewable Energy buyer and trader in Zambia which seeks to enhance project bankability and reduce risk for Independent Power Producers.”

“I am reliably informed that this initiative has been made possible through the generous support from various partners including the Denmark Investment Development Fund for Developing Countries (IFU), InfraCo Africa and Electrifi, through which US$15.5 Million was raised for this project,” Engineer Kapala said.
He added that the Ministry is convinced that this milestone investment will support the country’s development of green and diversified energy mix, one that creates jobs, new business opportunities, while positioning the country as the regions’ power trading hub.
The Minister further commended Africa GreenCo, Denmark Investment Development Fund for Developing Countries, InfraCo Africa and other cooperating partners for partnering with his Ministry to successfully develop and implement the project.
Speaking at the same event, Zesco Managing Director Victor Mapani said government has a drive to increase Copper production to 3 million tonnes, which will require a lot of energy, and the energy sector shall drive the process.
Mr. Mapani stated that the coming on board of Africa GreenCo, Zesco is hopeful that it will not fail to provide electricity as expected because actors like GreenCo and other partners are key in helping the country’s electricity firm to deliver to all its customers in an efficient manner.
“50 percent of our energy right now is consumed by the Mines and if we ask for another 2.8 million or 2.9 million tonnes which means we might even need more energy to do this. At our residential level as well we still have a long way to go as we are sitting on conventional connections at about 35 percent with the ones off the grid needing another 20 percent but all that need to be brought onto the grid so we still require a lot of energy to do that and we have to do that in a manner that is sustainable.”
“With our hydrological issues right now, we know that when we have poor rainfall, we anticipate load shedding but now we shouldn’t anticipate load shedding because it is not part of a system operation, load shedding is an excuse to fail to deliver we are hoping we shall not fail deliver with GreenCo coming on board,” he stated.
Mr. Mapani added that Zesco played a very supportive role to GreenCo during the due diligence exercise with its investors, leading to the announcement of the US$15.5 million to invest in a solar plant in which Zesco will off take part of it while the rest will go to the sub-market.
Meanwhile, Africa GreenCo Chief Executive Officer Ana Hajduka said the firm is a new buyer of renewable energy in Zambia, which it trades and sells to Zesco and other customers.
Ms. Hajduka revealed that the Danish Investment Fund for Developing Countries (IFC) and the European Union (EU) funded Electrification Financing Initiative have committed US$15.5 million to enable Africa GreenCo to scale its innovative offering as Zambia’s first renewable energy buyer and services provider.
“We are a new buyer of renewables in Zambia. We buy exclusively renewable energy and it’s traded and onwards sell it either to Zesco itself or to the underlying customers. It’s important that a new buyer is in place in order to change the current, manner in which delivery of electrification is done, meaning that Zesco has to act as a single buyer with all the financial obligations being on its balance sheet and meaning that the fiscal of this country has to guarantee Zesco’s obligations.”
“We are here with the incredible support of some of Zambia’s key cooperating partners namely, the European Union via Electrifi, InfraCo Africa, and the government of Denmark via IFU who have just committed and we are announcing it today US$15.5 million as the first tranche to allow us to buy from up to 110 megawatts of Solar PV in Zambia. The investors also followed the leadership of the government on this new model,” Ms. Hajduka announced.
Africa GreenCo Group aims to increase private sector investment in energy generation in sub-Sahara Africa by mitigating the credit risks associated with the current lack of creditworthy off-takers.
It is part of the Private Infrastructure Development Group (PIDG) and seeks to alleviate poverty by mobilizing investment into sub-Saharan infrastructure projects.