InfraCo Africa, part of the Private Infrastructure Development Group (PIDG), has signed a convertible loan agreement with Africa GreenCo Group (GreenCo) to progress an innovative approach to building Zambia’s renewable energy capacity.

Gilles Vaes, InfraCo Africa’s CEO said that “GreenCo’s initiative of intermediary power off taker and power trading company is highly innovative and will help the Zambian electricity sector prepare for the future, working together with ZESCO and other key sector stakeholders.”

“The challenges of developing new renewable electricity production in Zambia are great and will require the combined efforts of initiatives such as GreenCo’s and ZESCO’s continued support of IPPs in the foreseeable future. We look forward to working with GreenCo in helping it to become operational.”

InfraCo Africa has leveraged $500,000 of funding from PIDG Technical Assistance (PIDG TA) to support wider work to develop the initial operational capability of GreenCo’s Lusaka-based company, GreenCo Power Services.

GreenCo will act as an intermediary renewable energy buyer and services provider.

The company’s operations will complement the Government of Zambia’s vision for the electricity sector as set out in the National Energy Policy 2019 and subsequent new energy sector legal and regulatory framework.

This represents an important step in scaling-up renewable energy investment to help mitigate climate change impacts, improve security of supply, and increase efficiency in the power sector whilst leveraging Zambia’s geographical position in the Southern African Power Pool.

Ana Hajduka, CEO of GreenCo, said: “We should like to take this opportunity to thank the Government of Zambia, our industry partners and particularly IDC, for their leadership role to date. Our sincere gratitude goes to ZESCO, the Department of Energy, ERB, OPPPI, the Zambian NDA/MNDP and EAZ, and the funders who have supported GreenCo to this point. Their continued support, plus the investments made by IFU, PIDG and InfraCo Africa are invaluable for the future success of GreenCo. We commend our investors’ continued support of a partnership that delivers clean and affordable electricity to Zambia and, on expansion of GreenCo’s activities, to the region.”

Honourable Minister Nkhuwa added: “The partnership with GreenCo is a great example of national action, and indeed international cooperation, as we strive to deliver affordable energy for all. Notwithstanding the current global economic uncertainty due to the COVID-19 pandemic, it is important that we plan for the future, one where renewable energy helps drive sustainable social and economic growth in Zambia.”