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GreenCo says it has secured a €50 million guarantee facility backed by the European Commission and Impact Fund Denmark (IFDK) under the European Fund for Sustainable Development Plus (EFSD+), aimed at strengthening electricity trading and renewable power investment across Southern Africa, including Zambia.
The facility, it is said, will support GreenCo’s ability to meet long-term payment obligations to independent power producers operating in Zambia, South Africa, Zimbabwe, Namibia and the Democratic Republic of Congo, according to a statement issued in Lusaka on Monday.
GreenCo said the facility addresses the lack of creditworthy, long-term offtakers, a major constraint to power sector investment in sub-Saharan Africa.
“This guarantee is not just about GreenCo – it is about proving that African power markets can work without sovereign guarantees. By using guarantees to unlock private investment rather than replace it, we can accelerate the energy transition while diversifying risk and leveraging flexibility to deliver innovative solutions to our clients,” said GreenCo Chief Commercial Officer and Co-Founder Cathy Oxby.
The company’s Chief Finance Officer and Co-Founder Pug Bennet added, “The related EFSD+ and IFDK guarantees are highly bespoke, and the product of creativity and hard work by the combined deal team.”
“This is precisely the type of catalytic intervention the EFSD+ was designed to support,” said Impact Fund Denmark Managing Director Thomas Hougaard, noting that the facility would help unlock investment to deliver clean, affordable and reliable electricity.
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