The Indian Renewable Energy Development Agency (IREDA) has completed its first renewable energy financing deal in Africa, approving a US$22.5 million loan for a 100-megawatt solar photovoltaic (PV) project in Zambia’s Serenje district.
The financing, announced on January 16, will support Swarna Solar Limited, a renewable energy developer, though the agency did not disclose the total project cost or the full financing structure. The project marks IREDA’s debut in African solar financing and highlights India’s ambitions to expand its footprint in international clean energy investment.
Through its international arm, IREDA Global Green Energy Finance IFSC Ltd (IGGEFIL), headquartered in India’s GIFT City, the agency seeks to tap global capital to support solar projects outside India. Officials said the Zambian deal demonstrates India’s growing interest in providing green-energy financing to emerging markets.
Zambia, which relies heavily on hydropower for the bulk of its electricity generation, has faced recurring energy shortfalls during periods of drought, exposing the power system to climate-related risks. As a result, authorities are seeking to diversify the country’s energy mix by expanding solar and other renewable capacity. The 100 MW Serenje project is expected to contribute to supply reliability and reduce dependence on hydropower, particularly during dry seasons.
“The loan from IREDA reflects a strategic collaboration between India and Zambia in renewable energy development,” a statement from the agency said. “We aim to mobilize global financial resources to support sustainable energy growth in emerging economies.”
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IREDA’s entry into Africa comes at a time when China is already well established in the region, both as a lender for energy projects and as a supplier of solar equipment. Analysts say India will need to offer competitive financing terms and engage in strategic partnerships to expand its presence amid strong Chinese influence.
Energy experts note that Africa’s solar market is rapidly growing. With several countries seeking to mitigate climate vulnerability and increase electricity access, demand for financing and technical expertise for utility-scale solar projects is rising. Zambia, in particular, has set ambitious goals for renewable energy expansion as part of its national energy strategy, making it a natural target for foreign investment.
While the terms of the IREDA loan have not been fully disclosed, such financing arrangements typically include concessional interest rates, longer repayment periods, and technical support to ensure the viability of projects in emerging markets. The agency has indicated that similar deals could follow in other African countries, as it explores opportunities to support solar projects across the continent.
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The development also reflects broader trends in India-Africa cooperation. India has increasingly emphasized green-energy diplomacy, leveraging technical expertise and financial instruments to engage with African partners in the renewable energy sector. Analysts say these initiatives aim to both expand India’s economic influence and contribute to global climate goals.
For Zambia, the project represents a key step in reducing vulnerability to climate shocks that have historically disrupted hydropower generation. By diversifying into solar energy, the country hopes to improve grid reliability, support industrial and residential electricity demand, and reduce economic losses associated with power shortages.
The Serenje solar PV project is expected to create local jobs during construction and operations, while contributing to Zambia’s renewable energy capacity and carbon-reduction targets. Although the full timeline for the project has not been disclosed, the loan approval signals that financing and planning are now moving forward.
With this transaction, IREDA establishes a foothold in Africa’s renewable energy market, potentially paving the way for future financing initiatives across the continent as countries seek clean, reliable, and climate-resilient power solutions.
