Africa-focused energy investor Exergy has secured US$250 million in financing from global energy and commodities group Mercuria for power generation and transmission projects in Zambia.
Subject to regulatory approvals, the funding will be deployed through Exergy subsidiaries Lunzua Power Company and Lusitu Transmission and Distribution Company. Several of the projects are already under development.
The deal is among the larger private sector financing commitments to Zambia’s electricity industry and marks Mercuria’s entry into the region’s power market.
Exergy operates across generation, transmission and power trading through Lunzua Power, Lusitu and Kanona Power Company. Its development pipeline includes a proposed transmission link connecting Zambia with the East African power market, alongside projects intended to increase domestic generation capacity.
The investment comes as Zambia seeks to expand electricity supply to support economic activity in sectors including mining, agriculture and manufacturing. The country’s Grow Zambia programme has a target of reaching 10,000 MW of supply by 2031.
For Mercuria, the financing also provides an opportunity to combine its commodities and power-market expertise with Exergy’s infrastructure portfolio. The companies said Mercuria’s involvement will extend beyond capital to include market analysis, trading risk management and international commercial relationships.
The two companies also pointed to electricity market reforms in Zambia, including the introduction of open access, as factors supporting greater private-sector participation in power infrastructure.
Zambia’s position within the Southern African Power Pool gives it access to regional electricity markets, while its borders with eight countries create potential for additional cross-border trading links. Exergy is developing its activities with a view to connecting Zambia more closely with markets in southern, central and eastern Africa.
Mercuria said Zambia’s stability, economic growth plans and regional position were among the factors behind its decision to provide long-term capital.
The financing comes as African governments and private investors seek to expand power infrastructure alongside initiatives such as Mission 300, led by the World Bank and African Development Bank, which aims to connect 300 million people in Africa to electricity by 2030.
