19.2 C
Tuesday, July 23, 2024
HomeNewsDBZ contributes $2.5 million to Zambia’s renewable energy sector projects

DBZ contributes $2.5 million to Zambia’s renewable energy sector projects

(Copperbelt Katanga Mining)-The Development Bank of Zambia (DBZ) has allocated USD2.5 million to support renewable energy projects in Zambia’s private sector, creating new opportunities and driving sustainable development in Zambia.

This funding is part of the Rural Electrification Authority Off Grid Loan Facility (OGLF) launched by the government to enhance private sector participation in the rural electrification space.

The funding is also part of the USD26.5 million financing made available by the International Development Association of the World Bank through the Electricity Services Access Project (ESAP) to increase electricity access in rural areas in Zambia.

Of the total project amount, USD2.5 million has been allocated to support Small and Medium Enterprises (SMEs) through renewable energy mini-grids and stand-alone solar systems. The project is structured to leverage financing and participation from the private sector.

The Rural Electrification Authority (REA) is the technical partner for implementing the project, while the DBZ manages the USD2.5 million line of credit as the Apex Lender. The funds will be accessible through ZANACO as the retail partner.

The DBZ is committed to promoting economic development as a Development Finance Institution (DFI). In line with this mandate, the bank will continue to augment its capacities to implement, manage, and monitor climate finance projects.

The bank commits to providing additional support to private and public sector entities to enhance access to financing through loans, equity, and guarantees. This combination of financing solutions is what the private sector needs to become competitive and successful in the market.

The DBZ aligns itself with priority sectors identified by the government in the Eighth National Development Plan (8NDP), such as the energy sector, to drive economic transformation and job creation.

The successful implementation of the project is intended to result in improved productivity for small and medium-scale enterprises with improved accessibility to electricity.

The pilot project will see the DBZ work closely with the private sector and the government to increase energy access in the country and develop a robust and bankable pipeline to unlock further investment in the renewable energy sector.


Most Popular