News Industry

Zambia Secures Financing for 32-MWp Ilute Solar Power Project

Zambia Secures Financing for 32-MWp Ilute Solar Power Project
Friday, 09 January 2026 08:09
  • Serengeti Energy reached financial close on the 32-MWp Ilute solar project in western Zambia.
  • The project relies on a merchant power purchase agreement without sovereign guarantees.
  • A $26.5 million senior debt package backs construction and sets a precedent for private solar deals.

Across sub-Saharan Africa, developers continue to face challenges in mobilizing sufficient financing for renewable energy projects. However, new financing structures without public guarantees are beginning to emerge and gain traction.

In partnership with Kwama Energy, renewable energy developer Serengeti Energy announced on Jan. 7, the financial close of the Ilute solar project.

The project consists of a 32-megawatt-peak photovoltaic power plant located near Sesheke in Zambia’s Western Province.

This milestone enables the start of construction and marks a significant step forward in the project’s development.

The Ilute project stands out for its financing and commercialization structure. Developers structured the plant as an independent power producer and anchored the project on a merchant power purchase agreement with GreenCo Power Services Ltd.

GreenCo operates as a regional electricity aggregator within the Southern African Power Pool, the regional power market for southern Africa. Unlike traditional models, the project does not benefit from sovereign guarantees or direct commitments from Zambia’s public utility.

Instead, developers plan to sell the electricity output on the regional market through GreenCo.

A $26.5 million senior financing package enabled the project’s financial close. A consortium of lenders provided the funding by combining concessional, development and commercial capital. The Dutch development bank FMO acted as the mandated lead arranger.

The lender group also included the Sustainable Energy Fund for Africa, managed by the African Development Bank, EDFI Management Company through the EU-funded ElectriFI initiative, and Triodos Investment Management.

The project aligns with Zambia’s strategy to diversify its power generation mix. The country relies heavily on hydropower, a dependence that exposes electricity supply to climate variability and drought risk.

By expanding solar capacity and leveraging regional power trade, Zambia aims to strengthen supply security. Once operational, Ilute could serve as a benchmark for future private solar projects in southern Africa built on similar merchant models, according to the project’s promoters.

This article was initially published in French by Abdoullah Diop

Adapted in English by Ange Jason Quenum

 

On the same topic
African airlines cargo traffic rises 18.2% year-on-year in January Africa-Asia routes drive growth, up 41.6% from 2025 Global air cargo traffic...
Tanzania has connected a 50-megawatt solar plant in Kishapu to the national grid. The project marks the first phase of a planned 150-megawatt solar...
Algeria’s state utility Sonelgaz has sent a technical team to Niger to prepare a new gas-fired power plant. The project comes as Niger faces...
Atomic Eagle increased Muntanga’s mineral resources to 58.8 million pounds, up 24% from 47.4 million pounds. The update added 11.4 million...
Most Read
01

Senegal launches 200 billion CFA bond in UEMOA Proceeds to fund 2026 budget, transformation agend...

Senegal Launches $360 Million Regional Bond Sale
02

Amazon begins talks with Kenya on low-Earth orbit satellite broadband Kenya’s digital market ...

Amazon Turns to Kenya as Its Next Low-Orbit Satellite Internet Bet in Africa
03

Algeria’s NESDA and the Algerian‑Saudi Investment Company sign cooperation deal focused on researc...

Algeria’s NESDA, ASICOM Sign SME Investment Deal; Funding Details Unspecified
04

DRC seeks ITC support for local battery value chains Musompo SEZ targets $2 billion private ...

DRC seeks ITC support to advance battery mineral value chains
05

BOAD says sovereign bond purchases are liquidity management Member states accelerate borrow...

BOAD Defends Sovereign Bond Purchases as Liquidity Management, Not Budget Support
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.