Policy reforms drive renewable energy Financing – Stanbic

By BUUMBA CHIMBULU

STANBIC Bank has credited the country’s progressive policy framework for enabling the successful rollout of energy projects, particularly in the solar sector.

Speaking during a panel discussion at the Energy Forum for Africa 2025 (EFFA) in Lusaka, Head of Corporate and Investment Banking Helen Lubamba said reforms such as open access – allowing Independent Power Producers (IPPs) to utilise the national grid – had made it possible for the bank to back investments in renewable energy.

“The policy environment, including cost-reflective tariffs, has been key in making it feasible for us to support projects that attract investors’ capital,” Ms Lubamba said at the forum, which was held at Mulungushi International Conference Centre in Lusaka under the theme “Investment Opportunities in the Energy Sector in Zambia and Africa.”

She noted that Stanbic provides project finance facilities linked directly to project cash flows, with rigorous assessments of viability, energy yield and sustainability.

Environmental and social safeguards, aligned to global standards, also remain central to the bank’s financing model.

Ms Lubamba added that more players were needed in the power sector, given the scale of the energy deficit, calling for greater collaboration with development finance institutions (DFIs), private investors, and power traders.

Earlier, Ministry of Energy Permanent Secretary Arnold Simwaba – represented by Director Ziba Mafayo – outlined ongoing reforms aimed at attracting investment.

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These included net metering, streamlined licensing processes for mini-grids and supportive legislation such as the Electricity Act of 2019 and the Rural Electrification Act of 2023.

He highlighted the country’s 30-year electricity sector blueprint which projects demand growth and supports forward planning.

“The open access policy is encouraging private sector participation by providing non-discriminatory access to the transmission and distribution networks,” he said.

Zambia’s current installed generation capacity stands at 3, 885 megawatts, with hydropower accounting for 85 percent.

However, the country is generating just 1, 200 megawatts against a peak demand of 2, 800 megawatts.

To address load shedding, Mr Simwaba said Government had introduced both short- and long-term measures, including imports, reduced exports, the development of solar PV plants and tax incentives.

“Several solar projects are still working to achieve financial close, but we are confident they will soon ease power shortages,” he added.