Zambia secures $154 million climate-resilient energy investment

The Green Climate Fund and the African Development Bank have partnered to support a US$154 million renewable energy financing framework aimed at reducing Zambia’s dependence on hydropower and boosting climate-resilient electricity generation.

Catherine Koffman, the GCF Regional Director for Africa, said during a virtual briefing on Monday that the programme approved in 2018 would help Zambia address persistent power deficits by scaling up alternative energy sources, particularly solar.

Koffman said Zambia had historically relied on hydropower for about 90 percent of its electricity, but recurring climate-induced droughts had severely constrained water levels and reduced generation capacity.

Under the new framework, she said, financing will support the development of 100 megawatts of renewable energy projects, mainly small-scale solar plants.

The initiative will also provide technical assistance to strengthen rural electrification policies and build the capacity of domestic financial institutions.

“The project is a significant step towards enhancing Zambia’s energy resilience. The total financing requirement is US$154 million, with GCF providing US$50 million in debt financing and a US$2.5 million grant,” Koffman said.

She added that the proposal includes co-financing from AfDB, commercial banks and private-sector investors.

“We are committed to supporting Zambia’s transition to a low-carbon economy,” she said, noting that the investment was expected to crowd in additional funding into the sector.

Koffman said the GCF and AfDB had signed the funded activity agreement, marking a new milestone in cooperation between the two institutions.

“Our joint investment will enable a rapid diversification of Zambia’s energy system, ensuring resilience to climate change,” she added.

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