In southern Africa, frequent power outages are disrupting both households and businesses, particularly in Zambia, where many areas receive less than three hours of electricity per day. These shortages hinder economic growth and development, highlighting the urgent need for more reliable energy sources.
Zambia relies heavily on hydropower, a low-emission energy source, but climate change-induced droughts have caused significant reductions in electricity supply. The country also holds substantial potential for solar energy, yet the lack of investment capital has prevented the construction of solar parks that could help fill the energy gap during dry periods.
Africa GreenCo plays a critical role in addressing this challenge by guaranteeing the purchase of power from solar parks across southern Africa. Many solar and wind projects in the region remain unbuilt because developers lack buyers for the electricity they generate. Africa GreenCo acts as an intermediary, buying power from renewable energy suppliers and selling it to utilities and local businesses, effectively enabling green energy projects to move forward.
Impact Fund Denmark has made an additional investment in Africa GreenCo through a USD 6 million loan, while the European Commission provides a EUR 50 million guarantee via the fund. This financial support strengthens Africa GreenCo’s stability, enabling the establishment of new solar and wind projects and helping to create a more reliable and sustainable energy supply across the region.
