Exergy, an Africa-focused integrated energy investor, and Mercuria, a global energy and commodities group, have signed a US$250 million financing agreement in Lusaka, Zambia, to support power generation and transmission projects across Southern and Eastern Africa.
The agreement is subject to regulatory approvals and represents one of the largest private capital commitments to Zambia’s power sector to date. It also marks Mercuria’s entry into the region’s power market.
The financing will support projects being developed and managed through two Exergy subsidiaries, Lunzua Power Company and Lusitu Transmission & Distribution Company. Several of the projects are already under development, including a major transmission highway intended to connect Zambia with the East African power market.
Exergy operates across the electricity value chain through three core subsidiaries. Lunzua Power Company focuses on power generation, while Lusitu Transmission & Distribution Company manages transmission and distribution activities. Kanona Power Company is responsible for power trading and market optimization.
The investment is expected to contribute to Zambia’s target of reaching 10,000 MW of power supply by 2031 under the country’s “Grow Zambia” agenda. The expansion of reliable electricity infrastructure is considered important for supporting economic activities across sectors such as mining, agriculture, tourism, and manufacturing.
The partnership also supports broader regional electrification objectives under Mission 300, a joint initiative of the World Bank and African Development Bank that aims to connect 300 million people in Africa to electricity by 2030.
Exergy said the financing demonstrates confidence in Zambia’s economic potential and shows that international commercial capital can support African energy infrastructure projects at scale. Alongside funding, Mercuria will provide expertise in energy trading, risk management, analytics, and global market relationships.
Mercuria identified Zambia’s political stability, economic growth plans, and geographic position as important factors behind the investment. Zambia borders eight countries and is part of the Southern African Power Pool, giving it a strategic position for regional electricity trade.
The companies also highlighted reforms in Zambia’s power sector, including measures to provide greater access to the electricity market. These reforms have helped create an environment in which independent power companies can develop, finance, and expand generation and transmission infrastructure.
The US$250 million commitment is therefore expected to strengthen Exergy’s project pipeline while supporting Zambia’s efforts to expand electricity supply and improve regional power connectivity.
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