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Stanbic Bank has attributed the successful implementation of various energy projects, particularly in solar, to the favorable environmental policy framework provided by the government.
Head, Corporate and Investment Banking, Helen Lubamba, said progressive policies such as open access, which allowed Independent Power Producers (IPPs) to utilise the main grid, had made it possible for the bank to back investments in the sector.
She was speaking during a panel discussion at the just ended Energy Forum for Africa 2025 (EFFA) in Lusaka, held at Mulungushi International Conference Centre under the theme: “Investment Opportunities in the Energy Sector in Zambia and Africa.”
Lubamba also pointed to policy reforms including minimum requirements for mini-grid licensing, faster turnaround times at the Energy Regulation Board (ERB), and the bank’s partnership with various stakeholders including the state power utility ZESCO.
“What has made it feasible for us to do what we have been doing here in Zambia is the policy environment that has been put in place, such as cost-reflective tariffs which encourage investors to commit their capital,” said Lubamba.
She explained that the bank offered project finance facilities, structured to draw repayment directly from project cash flows and that this required rigorous scrutiny of the project’s viability, energy yield levels, and commercial sustainability.
‘We also have to consider the environmental impact, and this is non-negotiable for Standard Bank Group. Environmental and Social (E&S) considerations aligned to Equator and IFC principles need to be strictly adhered to,” she added.
She noted that addressing “softer issues” around project implementation remained critical to the success of financing arrangements which also embraced the requirements of climate financing, that incorporate E&S considerations for responsible, sustainable financing.
Lubamba stressed that there was still room for more players to enter the industry, given the magnitude of Zambia’s energy deficit, and emphasised the need for increased collaborations with more financial institutions, including DFIs, as well as additional industry participants like power traders.
Earlier, Ministry of Energy Permanent Secretary Arnold Simwaba, in a presentation delivered on his behalf by Ministry Director, Ziba Mafayo, highlighted reforms designed to attract investment, including open access and net metering.
Simwaba emphasized that the National Energy Policy anchored all policies in the sector, supported by the Zambia Power Development Framework, renewable energy and energy efficiency strategies, as well as a gender equality strategy.
“In terms of the legal framework, Zambia has the Electricity Act No. 11 of 2019, the Energy Regulation Act which is under review, and the Rural Electrification Act No. 5 of 2023,” he said.
He added that Zambia had developed a 30-year blueprint for the electricity sector to project demand growth and enable forward planning.
Simwaba reiterated that the open access policy encouraged private sector participation by allowing non-discriminatory access to the transmission and distribution networks.
Zambia’s total installed generation capacity stands at 3,885.86 megawatts, with hydro accounting for about 85 percent. The country has a peak demand of 2,800 megawatts but is currently generating about 1,200 megawatts’, he said.
He explained that the government had adopted both short- and long-term measures to address load shedding, including power imports, reduced exports, solar PV plant development, the presidential solar initiative in public institutions, and tax incentives.
“We also have a number of solar power plants under development, though several still face challenges reaching financial close. “However, we are confident that within a few years, they will supply the much-needed power and ease shortages,” Simwaba said.
The conference ended on a high note with stakeholders underscoring the urgent need for greater investment and collaboration.
Stakes remained high in the energy sector as the 2025 Energy Forum for Africa in Lusaka, sought to unlock the potential of Zambia and other African countries.
Described by industry players and organizers as a high-level regional gathering, the event attracted around 400 delegates from across Southern and Eastern Africa.
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