Zambia launches $275m grid resilience plan after debt buyback savings
Zambia launches $275m grid resilience plan after debt buyback savings
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The Zambian Government has announced a 15-year Grid Resilience Programme, saying it will convert fiscal gains from sovereign debt management into long-term investment in electricity distribution infrastructure.
Secretary to the Treasury Felix Nkulukusa said the programme will be funded using savings unlocked through the successful repurchase of Zambia’s outstanding US$1.365 billion 2053 Bond B Notes.
In a statement issued in Lusaka, Nkulukusa said the debt transaction was supported by a US$600 million facility from the African Development Bank and US$550 million from the Bank of Zambia.
“Under the debt-for-energy conversion framework, the government will channel US$275 million over the next 15 years into upgrading the country’s electricity distribution network,” Nkulukusa said.
He described the initiative as a major example of converting debt-related savings into productive infrastructure investment, and said it forms a central part of Zambia’s plan to ensure reliable, affordable and resilient power supply.
Nkulukusa said stable electricity is essential to economic growth, job creation and industrialisation, and underpins services such as households, schools and health facilities.
He said the programme will focus on reducing technical losses, easing network bottlenecks, improving system reliability and expanding access for underserved communities and businesses.
Nkulukusa added that renewable energy projects, including solar generation and battery storage, will be integrated to build a more climate-resilient energy mix.
He said modernising the distribution network would help Zambia manage future supply shocks, facilitate regional power trading within the Southern African Power Pool, and optimise electricity imports and exports when necessary, as the country pursues ambitions to become a regional energy hub and increase copper production.
Nkulukusa said implementation will be overseen by ZamGridCo, a newly established entity that will operate under a dedicated governance framework, with a board that includes private-sector representatives alongside government nominees.
He also expressed appreciation to the African Development Bank for supporting Zambia’s reform agenda.
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