Zambia has secured €2.7 billion (US$2.92bn) in energy-related investment commitments within just 13 days, a surge of financing led by Chinese state-linked firms alongside British and Norwegian development institutions, underscoring a rapid reconfiguration of the country’s infrastructure funding model.
Between April 10 and 23, the southern African nation announced three major projects spanning oil refining, renewable energy and electricity generation, in a move authorities say is critical to easing chronic power shortages and supporting its copper-driven growth ambitions.
The largest component is a €1 billion crude oil refinery in Ndola, developed by Zambia Petrochemical Energy Company, a joint venture between China’s Fujian Xiang Xin Corporation and Zambia’s state Industrial Development Corporation.
On April 21, British-Norwegian-backed independent power producer Globeleq launched a €290 million solar-plus-storage project near Lusaka, while on April 23 the China Machinery Engineering Corporation, a subsidiary of Sinomach, committed €1.4 billion for 900 megawatts of new generation capacity.
The government said the combined investments are central to achieving its target of producing 3 million tonnes of copper annually by 2031, a goal heavily dependent on stable electricity supply.
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Energy Minister officials say Zambia’s financing surge reflects a broader pivot away from reliance on multilateral support, coming just months after the conclusion of a 38-month IMF programme that disbursed about €1.58 billion.
The latest commitments alone exceed that entire support package, highlighting what analysts describe as a shift toward parallel funding streams involving bilateral lenders, development finance institutions and Chinese industrial capital.
Zambia’s power sector has faced acute strain in recent years due to heavy dependence on hydropower, which accounts for more than 80% of electricity generation. Severe droughts in 2023 and 2024 reduced output at key facilities, including the regionally shared Kariba dam, triggering widespread load shedding that at times reached up to 20 hours a day.
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Installed capacity currently stands at about 3,985 megawatts, while peak demand exceeds 2,400 megawatts, leaving a structural gap that has forced reliance on regional imports through the Southern African Power Pool.
Mining operations, which consume nearly 60% of electricity supply, have been particularly affected. Zambia produced about 820,000 tonnes of copper in 2024 but aims to scale output to 3 million tonnes by 2031, a target that officials acknowledge is impossible without major power expansion.
The new projects are expected to help close that gap. The Leopards Hill facility, developed by Globeleq, will combine 250 megawatts of solar power with a 150-megawatt battery storage system, enough to supply electricity to an estimated 150,000 households.
However, most of the projects remain at early stages, with feasibility studies, regulatory approvals and financial close still pending. Officials say execution timelines extend into the late 2020s.
The financing structure also reflects distinct geopolitical and development strategies. Chinese firms are backing large-scale infrastructure and industrial energy supply, while British and Norwegian institutions are focusing on bankable renewable energy projects aligned with private sector investment frameworks.
Analysts say the convergence of these funding streams highlights Zambia’s growing role as a testing ground for hybrid financing models in African infrastructure, even as risks remain over political continuity, project delays and power demand growth.
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If implemented successfully, officials argue, the investments could significantly reshape Zambia’s energy landscape and strengthen its position as one of Africa’s key copper producers.
