By BARNABAS ZULU
THE Copperbelt Energy Corporation (CEC) says it will invest US$500 million in various renewable power projects and build additional transmission lines over the next two years to meet growing electricity demands in Zambia and the Democratic Republic of Congo (DRC).
CEC said increasing mining activity in the two countries was driving the growth in demand for power, motivating the company to invest in new infrastructure projects.
“As CEC, we have a plan to invest around US$500 million over the next two years and most of this financing will come from third-party financiers.
We try to pick the right and sustainable financing for very specific projects,” CEC Chief Financial Officer Mutale Mukuka said in an interview.
Mr. Mukuka said CEC is targeting partnerships with other companies, whether private or public, and also with the government through public-private partnerships to deliver the much-needed projects.
He said CEC was ready to play an active role in the ongoing shift toward developing large power projects in the country by encouraging collaboration between the government and private players.
“In Africa, we know that infrastructure developments, not just solar projects, were a preserve of the government, but now we are moving to a stage where the government is allowing private sector investors to invest in infrastructure as a whole.
“That implies that not just the developers and the financiers, but also the government need to work together. On its part, the government needs to change rules to ensure they provide comfort to anyone investing money and that the risk allocation for those infrastructures is correctly assigned,” he said.
Mr. Mukuka said as pioneers in the issuance of green bonds, CEC would focus on mobilising different financing options to ensure it gets full value for all its investments while prioritising the growth of its environmental, social, and governance footprint.
“We are quite bullish as a company, and we appreciate the fact that the government has created an enabling environment to allow for private sector participation in the sector. In transmission, you’ll see more projects and partnerships, not just CEC with the private sector but also private sector with the government on PPP-type structures. This will not be limited to transmission but will extend to generation as a whole,” he said.
In 2023, CEC became the first company in Zambia to issue a Green bond valued at US$200 million.
The company has made a drawdown of US$150 million, which has been invested to build the 34 megawatt Riverside plant, the 60 megawatts Itimpi-1 and the upcoming 136 megawatts Itimpi-2, planned for commissioning in the first quarter of 2026.
