EUR 40m raised for green energy revolution in Zambia
ElectriFI, the EU-funded facility for access to energy in frontier market has launched a EUR 40m investment scheme for Zambia. The ElectriFI country investment strategy was launched on 28 May in Lusaka.
Through this country window, the specialized debt and equity financing partner for small scale private companies is bringing the private sector on board through a combination of innovative financing instruments for both on grid and off grid investments. By 2030, ElectriFI envisions to leverage commercial and private investment to some 250million.
Gianluca Azzoni, EU Head of Development Cooperation explained: “ElectriFI Zambia reflects a paradigm shift to financing rural electrification and responds to the policy objective, also enshrined in the 7th National Development Plan, to encourage private initiatives in filling the investment gap, promoting diversification of the country’s energy mix and increasing access to clean, modern, reliable and affordable energy services”.
“A lot of private companies turned up at our launch event, both Zambian and international. It speaks to the attractiveness of Zambia as a place to invest if the right financing tools are there to support and derisk,”explained Marcus Rother, ElectriFI Senior Investment Officer. Dominiek Deconinck, ElectriFI Fund Manager complemented: “Structured programmes like Scaling Solar and GetFit, together with EIP, are opening the way for Independent Power Producers to add clean Megawatts to the generation mix, while microgrid and SHS companies are starting to raise capital to launch into the more remote parts. Neither of these businesses are easy and you need financial partners who understand offtaker risk and are willing to share part of it”.
“We believe that ElectriFI Zambia can play a catalytic role in mobilising additional finance and that the investment strategy adopted for the country represents a good opportunity to address some of the key challenges that prospective investors face,” concluded Gianluca Azzoni.