• INSIGHT
The need for commercial banks to rise to this challenge has never been more imperative and banks like Zanaco Bank Plc have joined in this crusade towards a renewable energy future.
Over the past few years, Zanaco has contributed the following in the growth of the energy sector, with notable projects being funding the 100MW Solar PV Power Plant( Phase 1) in Nambala, Mumba and will be commissioned by April 2026 and the USD25- million towards Phase 2 of the 300MW Power Plant for Maamba Energy located in Maamba District. The total project cost is estimated at USD400-million.
These efforts are being backed by policy reforms in the energy sector, such as cost-reflective tariffs, faster licensing and openaccess regulations, which are making Zambia a more attractive destination for energy investors. The government is also matching private sector-driven efforts with its own ambitious plan to add 1 000 megawatts of solar to the grid in the coming months.
Regionally, the Southern African Power Pool provides a safety net by enabling cross-border power trading, reducing market risk for producers.
Globally, more than USD3.6-trillion has been invested in renewable energy over the past decade; Africa received barely 2 %. The issue is not a lack of global capital but a shortage of bankable projects. As World Bank energy specialist Ahid Maeresera notes, eight out of ten proposals collapse before reaching feasibility and many of the remaining projects fail to reach financial closure.
Predictable regulations, transparent risk-sharing mechanisms and cost-reflective pricing are essential to attracting private capital.
Zambia’ s ongoing reforms, such as establishing an independent system operator and expanding blended-finance programmes like the World Bank’ s ASCENT, offer hope. The Mission 300 initiative, which aims to connect 300 million Africans to electricity by 2030 and has allocated nearly USD90-million to Zambia, is another encouraging step.
But incremental progress will not close the gap. Policymakers must accelerate regulatory reforms, streamline procurement and secure reliable industrial off-takers. Development Finance Institutions should expand guarantees and provide patient capital to de-risk private investment. African governments must treat transmission lines as national priorities and build robust markets that serve more than just the mining sector.
Energy poverty is not an abstract economic concept, it is a daily reality that limits opportunity and erodes dignity.
Closing Africa’ s energy financing gap is therefore not optional. It is the key to powering the continent’ s economic future and providing millions of families with the basic security of reliable electricity. Zambia is already doing this by investing in the Zambia-Tanzania interconnector.
Added to this, solar power, small-scale hydro and mini grids will be central to this transition, especially in rural communities. Recent reforms, including the 30-year Integrated Resource Plan, faster licensing and open-access frameworks, are helping attract privatesector interest.
Energy security is not a luxury; it is a necessity, and aligning government ambition with private-sector innovation can turn today’ s energy shortfall into tomorrow’ s competitive advantage.
Mukwandi Chibesakunda was among the speakers at the Africa Energy Indaba 2026 – Africa’ s premier energy conference and exhibition, which took place 3 – 5 March 2026 in Cape Town. •
Source: supplied by African Energy Indaba
Energy poverty is not an abstract economic concept, it is a daily reality that limits opportunity and erodes dignity.
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38 • African Mining • March 2026 www. africanmining. co. za