NEWS

Exergy, an Africa-focused integrated energy investor, and Mercuria, a global energy and commodities group, have signed a US$250 million financing deal in Lusaka, marking one of the largest private capital commitments to Zambia's power sector and Mercuria's entry into the region's power market.

Subject to regulatory approvals, the funds will finance generation and transmission projects by two Exergy subsidiaries, Lunzua Power Company and Lusitu Transmission and Distribution Company, several of which are already underway.

Exergy operates across the power value chain through three subsidiaries: Lunzua Power in generation, Lusitu Transmission and Distribution in transmission, and Kanona in trading, balancing surplus and deficit positions. It actively trades in the Southern African power market and is developing several infrastructure projects, including a transmission highway linking Zambia to the East African power market.

Through its subsidiaries, its pipeline will contribute to Zambia's target of 10,000 MW of supply by 2031, a central pillar of the Grow Zambia agenda, and to the reliable supply needed by mining, agriculture, manufacturing, tourism, and industry. Regionally, its trading and cross-border ambitions support Mission 300, the World Bank and African Development Bank initiative to connect 300 million Africans to electricity by 2030.

According to Exergy, the deal signals confidence in Zambia, in the region, and in the ability of global partners to finance African energy at scale on commercial terms. With every target of the Grow Zambia agenda dependent on power, the company said it is positioned to help ensure that the country's past energy troubles are not repeated and to lead the development of a self-sustaining power ecosystem. Exergy added that Mercuria brings more than capital: as one of the world's largest energy traders, active in over 50 countries, it offers a global view of energy and commodity markets, and of how power, metals and trade connect, a perspective Exergy values as highly as the capital itself.