Government has through the Ministry of National Development Planning signed a Memorandum of Understanding – MoU with Zambia National Commercial Bank – ZANACO and National Pensions Scheme Authority – NAPSA for technical assistance component of the Zambia renewable energy financing framework project in Lusaka.
The energy project which is amounting to US$154 million was co-financed by the African Development Bank with an addition of US$51.5 million while NAPSA and other investors provided US$12.5 million and US$37.5 million respectively.
Speaking at signing ceremony of the project on March 04th 2020, Minister of National Development Planning Alexander Chiteme explained that the energy project is aimed at catalyzing private sector investment in renewable energy whose participation is cardinal towards the country’s full realization of climate resilient development pathway.
He said Zambia has in the past experienced adverse impact of climate change, notable are the prolonged droughts in some parts of the country which have impacted the hydro power production, food and water security hence government has implemented interventions including procurement of financing support to cushion the effects of climate change.
“You may wish to recall that at the 19th the Green Climate Fund – GCF Board meeting held in Songdo, South Korea the board approved a total of US$291.3 million inclusive of co-funding for two projects in agriculture and renewable energy for Zambia aimed at promoting both adaptation and mitigation programmes,” He said.
And NAPSA Director General Yollard Kachinda added that the authority is currently investing in the local economy and will continue to have activities to invest the funds in sectors such as the energy sector to grow the country’s economy.
At the same event, ZANACO Acting Chief Executive Officer Lishala Situmbeko said the Bank believes that there is a lot of potential for renewable energy to spur economic development, wind, solar, biomass and hydro provided there is actual investment to actualize it.
“We are happy to partner with Government, NAPSA and the AfDB to help catalyze private sector investment in the renewable energy subsector, “He added.
