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Africa GreenCo Group has reportedly signed a US$55.5 million facilities agreement with Stanbic Bank Zambia and the Standard Bank of South Africa Limited to finance power imports and address Zambia’s ongoing energy crisis.
The agreement was finalised through GreenCo’s Zambian subsidiary, GreenCo Finance Solutions Limited, according to a statement issued in Lusaka on Thursday.
GreenCo FinanceCo will use the funding to prepay for over 130MW of electricity imports, easing the financial burden on its clients by covering prepayment requirements for power procurement.
Johannes Baake, Chief Financial Officer at GreenCo, said the facilities would bridge the gap between the prepayment demands of suppliers and the post-payment practices of power consumers.
“The requirement to prepay for electricity has been a significant financial constraint on offtakers in Zambia. This collaboration, supported by Zambia’s national utility, ZESCO, is crucial during a prolonged electricity crisis caused by drought-induced reductions in hydropower generation,” Baake stated.
He added that prepaying for electricity on behalf of clients will help address Zambia’s immediate energy challenges, allowing GreenCo to import more power and ensure uninterrupted operations for industries, while freeing up electricity for households and small businesses.
“We are grateful to ZESCO for their collaboration and to Stanbic and Standard Bank for supporting our mission to bring sustainable energy solutions to the region,” Baake said.
Helen Lubamba, Head of Corporate and Investment Banking at Stanbic Bank Zambia, expressed satisfaction with the bank’s involvement in addressing Zambia’s energy challenges.
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“By providing these prepayment facilities, we are not only supporting critical business ventures but also contributing to national and regional efforts to mitigate the electricity crisis. This loan is an investment in Zambia’s future,” Lubamba said.
She also highlighted the innovative nature of the financing structure in addressing the country’s energy shortfall.
Sherrill Byrne, Executive in the Energy and Infrastructure Finance team at Standard Bank, praised GreenCo’s progress in facilitating cross-border power trade and addressing energy imbalances in the Southern African Development Community (SADC) region.
“This arrangement underscores GreenCo’s growing reputation as a key player in the energy sector and its role in ensuring energy security across the region,” Byrne said.
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