Lusaka, Zambia – Energy shortages continue to disrupt businesses, schools, health facilities and households across Africa, with Zambia illustrating the urgency of change. The country relies on hydropower for 85 percent of its electricity, leaving it vulnerable to weather shocks. A severe drought two years ago reduced output to 900 megawatts against a 2,400-megawatt demand, forcing some businesses to rely on costly generators while others closed.
Zambia is expanding solar energy at household and industrial levels, taking advantage of abundant sunshine and vast land. The government plans to add 1,000 megawatts of solar to the national grid, while the Energy Compact aims to install 10,000 megawatts of renewable capacity by 2030, requiring nearly US$12 billion in private investment. Rural electricity access currently stands at 34 percent, highlighting the need for urgent investment.
Commercial banks are supporting this transition. Zanaco Bank has funded the 100-megawatt Solar PV Power Plant in Nambala, Mumba, set for commissioning in April 2026, and contributed US$25 million to Phase 2 of the 300-megawatt Maamba Energy Plant in Maamba District, part of a US$400 million project. Policy reforms including cost-reflective tariffs, faster licensing, and open-access regulations are making Zambia more attractive to private investors, while the Southern African Power Pool enables cross-border power trading to reduce market risks.
Globally, more than US$3.6 trillion has been invested in renewable energy over the past decade, but Africa has received less than two percent, largely due to a shortage of bankable projects. Zambia is pursuing reforms such as establishing an independent system operator, expanding blended-finance programmes like the World Bank’s ASCENT, and participating in the Mission 300 initiative, which has allocated nearly US$90 million to connect Africans to electricity by 2030.
Mukwandi Chibesakunda, Chief Executive Officer of Zanaco Plc, who has been instrumental in funding key solar projects, says the country’s renewable energy push will be a major focus at the Africa Energy Indaba 2026, Africa’s leading energy conference and exhibition, scheduled for 3 to 5 March in Cape Town. The event will gather policymakers, investors, and innovators to discuss strategies for sustainable energy transformation across the continent.
Solar, small-scale hydro, and mini-grids are central to rural electrification, while robust transmission networks and predictable regulations remain essential to attract private investment. Aligning government strategies with private-sector innovation is key to reducing energy poverty and strengthening Zambia’s economic future.
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