Zambia is set to receive its first green bond for development of renewable energy project. This initiative was announced during the 28th United Nations Conference of the Parties on Climate Change (COP28) in Dubai, United Arab Emirates (UAE).
CEC Renewables (CECR), a subsidiary of Copperbelt Energy Corporation (CEC) will issue the green bond of US $200M. The first tranche of $54 million was subscribed by South African bank Absa and the Emerging Africa Investment Fund (EAIF) of the Private Infrastructure Development Group (PIDG). EAIF’s representative at COP28, Paromita Chatterjee, expressed their enthusiasm about being the lead investor in Zambia’s first green bond program.
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Energy diversification
EAIF has committed to subscribing US $50M of the US $54M in green bonds issued under the first tranche. This investment will support the development of two solar photovoltaic power plants with a combined production capacity of almost 100 MW. The ultimate goal of CECR’s green bond program is to develop an installed solar capacity of 200 MW, contributing to the diversification of Zambia’s electricity mix.
Energy has been identified as an important driving force behind economic development in Zambia, and the government has declared its commitment to developing and maintaining energy infrastructure and services. The country has 2,800 MW of installed electricity generation capacity, of which 85% is hydro based. National access to electricity averages at 31% with 67% of the urban and 4% of the rural population having access to power. The Government of Zambia has set a goal for universal electricity access for all Zambians by 2030.
