- This MPower loan aims to enhance access to modern and affordable energy solutions in Zambia by importing and retailing solar products to off-grid communities.
- In addition to the loan, MPower Zambia will establish 50 new rural energy hubs.
The Trade and Development Fund (TDF) under the Eastern and Southern African Trade and Development Bank Group (TDB Group) has granted a 3-year USD 2 million term loan to MPower Ventures Zambia Limited. This loan aims to enhance access to modern and affordable energy solutions in Zambia by importing and retailing solar products to off-grid communities.
MPower Zambia plans to expand its range of plug-and-play household solar devices and market-driven productive assets such as freezers, sewing machines, and water pumps to lower- and middle-income households, small and medium-scale enterprises (SMEs), and farmers in peri-urban and rural areas.
In addition to the loan, MPower Zambia will establish 50 new rural energy hubs. These hubs will enable communities to access energy for domestic and public purposes, such as lighting health centres, through last-mile power extension from the hubs to nearby facilities. The project will create 30 direct and over 500 indirect jobs, boosting productivity and economic activity while improving livelihoods in areas without access to the electricity grid.
TDF signed the loan agreement with MPower during a breakfast meeting at the Intercontinental Hotel in Lusaka, attended by various government officials and CEOs. Discussions during the meeting focused on opportunities for financing renewable energy projects in Zambia. TDB Group reaffirmed its commitment to supporting member states in achieving national priorities by providing innovative financing solutions in critical sectors promoting sustainable development.
The Executive Director of TDF, Gloria Mamba, stressed the importance of providing concessional financial solutions to SMEs, which often struggle to secure financing from formal banking channels. She emphasised the potential for such initiatives to drive change and foster sustainable development in regional communities.