ZAMBIA TO INVEST US$275 MILLION IN POWER GRID UPGRADE THROUGH LANDMARK DEBT-FOR-ENERGY DEAL
The Zambian Government has launched a 15-year Grid Resilience Programme that will channel US$275 million into upgrading the country’s electricity transmission and distribution network using savings generated from a sovereign debt restructuring transaction.
The programme follows the successful buyback of Zambia’s outstanding US$1.365 billion Eurobond debt, financed through a US$600 million facility from the African Development Bank (AfDB) and US$550 million from the Bank of Zambia.
The government says the initiative is one of the most significant examples of converting debt relief into productive infrastructure investment, with the funds set to improve electricity reliability, reduce technical losses, and modernise the national power grid.
According to the Ministry of Finance and National Planning, the investment will help eliminate network bottlenecks, strengthen system resilience, and support the integration of renewable energy sources, including solar generation and battery storage systems.
The programme is also expected to support key sectors of the economy such as mining, agriculture, manufacturing, tourism and digital services by ensuring a more stable and efficient electricity supply.
The government says a modernised grid will enable Zambia to better manage future power shocks, enhance participation in regional electricity trade within the Southern African Power Pool and strengthen the country’s ambitions of becoming a regional energy hub.
Implementation of the programme will be overseen by ZamGridCo, a newly established entity that will work under a governance framework involving both private sector representatives and Government nominees.
The Ministry of Finance says the initiative demonstrates how gains achieved through debt restructuring can be translated into long-term economic growth, infrastructure development and improved service delivery for citizens.
By Rachel Mumba
