Financial Close Achived for the First 40MW Project in the GET FiT Zambia 120MW Solar PV Portfolio

The GET FiT Zambia Programme has reached a landmark achievement with Globeleq's successful Financial Close for its 40MW Kafue Solar PV Project, part of the Programme's 120MW Solar PV portfolio. The milestone marks the first project under the GET FiT Zambia Solar PV Programme to reach Financial Close and demonstrates growing confidence among investors and lenders in Zambia's power sector.

The achievement represents a significant milestone not only for the Globeleq project, but also for the broader GET FiT Zambia Programme and Zambia's renewable energy sector.

GET FiT Zambia is financed through a grant from KfW on behalf of the German Government. The programme supports the Ministry of Energy in developing a sustainable procurement framework while improving the investment environment for private sector participation in Zambia's power sector.

As Implementation Consultant to the Programme, Multiconsult has worked alongside the Ministry of Energy, KfW, ZESCO, project developers, financiers, and other stakeholders throughout the procurement and development process. The achievement of Financial Close reflects years of technical, commercial, regulatory, and stakeholder engagement efforts aimed at creating a viable pathway for renewable energy investment in Zambia.

Celebrating a Major Milestone

Stakeholders from government, development partners, financial institutions, and the private sector gathered on 29 September 2026 to celebrate Financial Close for the 40MW Globeleq Kafue Solar PV Project, the first project under the GET FiT Zambia Solar PV Programme to reach Financial Close.

Hon. Dr. Situmbeko Musokotwane, Minister of Finance and National Planning and Acting Minister of Energy, joined Ambassador Soenke Siemon, German Ambassador to Zambia and Special Representative to COMESA; British High Commissioner for Zambia, Rebecca Terzeon; His Majesty's Trade Commissioner for Africa, Alastair Long; as well as leaders from ZESCO, KfW, Standard Chartered Bank Zambia, development finance institutions, and the wider energy sector, to mark this important step forward for Zambia's renewable energy sector.

During the event, speakers highlighted the importance of collaboration, perseverance, and long-term partnership in overcoming challenges and advancing Zambia's energy ambitions.

Ambassador Siemon emphasised that "lasting progress is built through partnership," noting Germany's longstanding cooperation with Zambia and the catalytic role of the GET FiT Zambia Programme in mobilising private investment for renewable energy development.

While the ceremony celebrated a major achievement, the long journey from project award in 2019 to Financial Close also reflects the challenges associated with developing large-scale renewable energy projects in Zambia.

The Road to Financial Close

The Globeleq Kafue Solar PV Project forms part of the GET FiT Zambia 120MW Solar PV portfolio, which was procured through a competitive reverse auction launched in 2018. In 2019, the Ministry of Energy announced the successful projects, granting each consortium the rights to develop two 20MW solar PV projects, resulting in a combined portfolio of 120MW. The tender delivered what were, at the time, the lowest solar tariffs achieved in the region.

The projects were initially expected to reach commercial operation during the first half of 2021. However, implementation was delayed when lenders suspended financing for energy sector projects in 2020 due to concerns regarding financial sustainability in the sector combined with broader macroeconomic challenges.

Government and sector stakeholders subsequently addressed the concerns raised by lenders. Progress on Zambia's debt restructuring process helped restore confidence in the country's economic outlook and created a pathway for financiers to re-engage with the projects.

In parallel, KfW, at the request of the Government of Zambia, agreed to allocate Euro $8 million from the GET FiT Zambia grant towards the establishment of a liquidity mechanism to mitigate short-term payment risks associated with ZESCO, the projects' power off-taker. The mechanism takes the form of an escrow facility provided by Standard Chartered Bank Zambia, designed to bridge temporary payment gaps and give lenders greater confidence that debt obligations can continue to be met even in the event of short-term liquidity constraints. This EUR 8 million liquidity support facility has helped unlock approximately EUR 160 million in total investment across the portfolio, demonstrating the catalytic effect of targeted risk-mitigation measures in attracting private capital.

Following progress on debt restructuring negotiations and continued engagement between Government, KfW, ZESCO, developers, and financiers, lending discussions resumed. By August 2024, the successful bidders had mandated leading Development Finance Institutions, initiating a confidential due diligence process to finalise debt structures. Project agreements were subsequently concluded in 2025.

Achieving Financial Close marks an important milestone for the project in particular and for Zambia's renewable energy sector in general. It confirms that all key agreements are in place and that the project has secured the financing required to move into implementation. More broadly, it represents a significant step towards delivering additional renewable energy capacity to Zambia's national grid and supporting the country's long-term energy security.

Looking Ahead

Globeleq's project is the first of the Solar PV projects being delivered under the GET FiT Zambia Programme. Together with the projects being developed by the Copperbelt Energy Corporation, InnoVent SAS and Red Rocket, the portfolio will add 120MW of clean energy capacity to Zambia's power system.

As the remaining projects progress towards Financial Close and implementation, the portfolio is expected to play an important role in meeting Zambia's growing electricity demand and strengthening the country's energy security.