- Mercuria and Exergy have signed a $250 million financing agreement to support power generation and transmission projects in Zambia and across Southern and Eastern Africa.
- The investment will support Zambia’s 10,000 MW power supply target by 2031 while strengthening regional electricity trading and cross-border power links.
Mercuria, a global energy and commodities group, and Africa-focused energy investor Exergy have signed a $250 million financing agreement in Lusaka, Zambia, to accelerate power generation and transmission projects across Southern and Eastern Africa.
Subject to regulatory approvals, the financing will support projects developed by Exergy subsidiaries Lunzua Power Company and Lusitu Transmission and Distribution Company. Several projects within the pipeline are already under development.
The agreement marks Mercuria’s entry into the regional power market and represents a major private capital commitment to Zambia’s electricity sector.
Exergy operates across the electricity value chain through three subsidiaries. Lunzua Power focuses on generation, Lusitu Transmission and Distribution develops transmission and distribution infrastructure, while Kanona Power manages electricity trading and balances surplus and deficit positions.
The company is also developing a transmission highway designed to connect Zambia with the East African power market. Its project pipeline will support Zambia’s target of reaching 10,000 MW of electricity supply by 2031 under the country’s Grow Zambia agenda.
The additional generation and transmission capacity will support electricity demand from mining, agriculture, manufacturing, tourism and other industries.
Exergy said the agreement demonstrates investor confidence in Zambia and the wider region, while providing capital to develop a more integrated power ecosystem.
The company also highlighted Mercuria’s global energy trading expertise as an important component of the partnership. Mercuria operates across more than 50 countries and will provide market knowledge, analytics, trading risk management and international relationships alongside its financial commitment.
Mercuria said Zambia’s stability, economic growth strategy and regional position influenced its decision to provide long-term capital.
The company said it aims to help address power infrastructure bottlenecks that have constrained economic growth across Africa. It also identified Exergy’s industry expertise, execution-ready project pipeline and regional platform as key factors behind the partnership.
Both companies credited reforms in Zambia’s electricity market, including open access, with creating opportunities for independent companies to develop and expand power infrastructure.
Under the partnership, Mercuria will combine its trading capabilities and global market relationships with Exergy’s operational and infrastructure expertise. The companies will use this combination to support project delivery and strengthen regional electricity markets.
Zambia’s geographic position also provides a strategic base for regional power trade. The country borders eight nations and operates within the Southern African Power Pool, while developing connections with electricity markets in East and Central Africa.
The partnership also aligns with Mission 300, a World Bank and African Development Bank initiative that aims to connect 300 million Africans to electricity by 2030. Exergy’s generation, transmission and trading activities could support greater regional electricity access and cross-border power flows.
The companies said the transaction reflects a broader role for private capital in developing strategic energy infrastructure alongside development finance institutions and development banks.