$2.5 Million Announced for SME Renewable Projects

The Development Bank of Zambia and ZANACO have unveiled a joint funding initiative aimed at supporting private sector renewable energy projects in Zambia.

A $2.5 million portion of the World Bank’s $26.5 million renewable funds will be allocated to the DBZ and Rural Electrification Authority’s Off-Grid Loan Facility (OGLF). The loans will be offered to Small and Medium Enterprises (SMEs) to help them shift to alternative renewable energy sources, and will be available through DBZ’s retail branch ZANACO.

DBZ has also launched a credit line facility for the Electricity Services Access Project (ESAP), which is the first credit facility DBZ has founded for a renewable energy project. ESAP’s goal is to extend access to electricity to remote rural areas of Zambia.

DBZ’s acting Managing Director, Maybin Muyawala, lauded the Loan Grid Facility in a speech at its launch, highlighting the importance of the initiative in supporting SMEs in rural villages. Mr. Muyawala added that the OGLF was just one of several financial solutions the DBZ was engaged in in overcoming problems within and beyond Zambia.

Also present was Christopher Saunders, a World Bank representative, who reaffirmed the WB’s continued support of Zambia’s governmental and private sector enrichment projects. ZANACO CEO Mukwandi Chibesakunda informed those present that ZANACO would electrify 1,217 rural growth centres by 2030.

For the New Dawn Government, the OGLD and ESAP credit line facility are considered crucial stepping-stones to Zambia reaching the necessary power generation for widespread prosperity and growth, and overcoming recent power issues that are one of the final legacies of the Lungu administration.

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