By Mukwandi Chibesakunda, Chief Executive Officer, Zanaco Plc.
Across the African continent, one topic increasingly dominates conversations in boardrooms, parliaments and everyday households: energy. When the grid fails and the lights go out, the consequences cascade through industry, education, health services and family life.
Energy has therefore moved beyond being a purely economic matter; it has become a deeply political one, shaped by national policies that determine how securely and sustainably the continent will be powered.
In the era of climate change, the need for innovative and resilient energy systems has never been more urgent.
Zambia is a good case in point. With 85 percent of its electricity generated from hydropower, the country remains highly vulnerable to weather extremes. The drought of two years ago exposed this fragility. By May 2024, Zambia could only produce 900 megawatts against a demand of 2,400 megawatts – a shortfall of roughly 750 megawatts. The economic impact was immediate and severe. Some businesses survived on costly generators; others did not survive at all.
Once seen as the bedrock of national energy security, Zambia’s large hydroelectric dams are now reminders of the need for deeper diversification. Encouragingly, the country is witnessing a surge in solar installations at both household and industrial levels.
With vast land and abundant sunshine, solar energy could become one of Zambia’s most reliable pathways to energy resilience.
But the promise of the sun – and of all renewable technologies – hinges on one stubborn barrier: financing. Across Africa, inadequate financing remains the single greatest obstacle to universal energy access.
Unless governments, financiers and private players work in alignment, millions will remain in the dark. In Zambia, rural electricity access is still just 34 percent.
Zambia’s Energy Compact aims to install 10,000 megawatts of renewable capacity by 2030. Achieving this will require nearly US$12 billion in private investment – almost half of the country’s GDP.
The need for commercial banks to rise to this challenge has never been more imperative, and banks like Zanaco Bank Plc have joined in this crusade towards a renewable energy future.
Over the past few years, Zanaco has contributed the following in the growth of the energy sector with notable projects being funding the 100MW Solar PV Power Plant (Phase 1) in Nambala, Mumba and will be commissioned by April 2026 and the $25 million towards Phase 2 of 300MW Power Plant for Maamba Energy located in Maamba District. The total project cost is estimated at $400 million.
These efforts are being backed by policy reforms in the energy sector, such as cost-reflective tariffs, faster licensing and open-access regulations, which are making Zambia a more attractive destination for energy investors. The government is also matching private sector-driven efforts with its own ambitious plan to add 1,000 megawatts of solar to the grid in the coming months.
Regionally, the Southern African Power Pool provides a safety net by enabling cross-border power trading, reducing market risk for producers.
Globally, more than US$3.6 trillion has been invested in renewable energy over the past decade; Africa received barely two percent. The issue is not a lack of global capital but a shortage of bankable projects. As World Bank energy specialist Ahid Maeresera notes, eight out of ten proposals collapse before reaching feasibility, and many of the remaining projects fail to reach financial closure.
Predictable regulations, transparent risk-sharing mechanisms and cost-reflective pricing are essential to attracting private capital.
Zambia’s ongoing reforms – such as establishing an independent system operator and expanding blended-finance programmes like the World Bank’s ASCENT – offer hope. The Mission 300 initiative, which aims to connect 300 million Africans to electricity by 2030 and has allocated nearly US$90 million to Zambia, is another encouraging step.
But incremental progress will not close the gap. Policymakers must accelerate regulatory reforms, streamline procurement and secure reliable industrial off-takers. Development Finance Institutions should expand guarantees and provide patient capital to de-risk private investment. African governments must treat transmission lines as national priorities and build robust markets that serve more than just the mining sector.
Energy poverty is not an abstract economic concept – it is a daily reality that limits opportunity and erodes dignity.
Closing Africa’s energy financing gap is therefore not optional. It is the key to powering the continent’s economic future and providing millions of families with the basic security of reliable electricity. Zambia is already doing this by investing in the Zambia-Tanzania interconnector.
Added to this, solar power, small-scale hydro and mini grids will be central to this transition, especially in rural communities. Recent reforms, including the 30-year Integrated Resource Plan, faster licensing and open-access frameworks are helping attract private-sector interest.
Energy security is not a luxury; it is a necessity, and aligning government ambition with private-sector innovation can turn today’s energy shortfall into tomorrow’s competitive advantage.
