Zambia Unveils $200m Green Bond For Solar Energy Push

  • Zambia launches a $200 million green bond program led by CEC Renewables.
  • South African Bank, ABSA, and the EAIF subscribe to the initial $54 million tranche at COP28 in Dubai.

Zambia enters the green bond market with a $200 million program led by Copperbelt Energy Corporation Renewables (CECR), a subsidiary of Copperbelt Energy Corporation. South African bank Absa and the Emerging Africa Investment Fund (EAIF) subscribed to the initial $54 million tranche, signalling a positive start at COP28 in Dubai, UAE.

Paromita Chatterjee, the EAIF representative at COP28, expresses delight in leading Zambia’s first green bond program, foreseeing it as a catalyst for more sustainable initiatives. EAIF commits $50 million of the $54 million in green bond issued on January 2, 2024, supporting the development of two solar photovoltaic power plants with a combined capacity of nearly 100 MW.

CECR aims for an installed solar capacity of 200 MW, aligning with Zambia’s goal to diversify its electricity mix, which is currently 83 per cent dependent on hydroelectric dams. Zambia’s solar potential, estimated at 2,300 MW by the Atlantic Council, underscores the significance of this initiative. The $200 million green bond program, structured by London-based Cygnum Capital, has attracted local investor interest, solidifying its impact on Zambia’s renewable energy landscape.

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