At a Glance
- Serengeti Energy reaches financial close on a 32MW merchant solar project in Zambia.
- Project avoids sovereign guarantees, selling power through GreenCo within Southern African Power Pool.
- FMO leads $26.5 million debt package blending development, concessional and commercial capital.
Serengeti Energy Limited, a Nairobi-based independent power producer with a growing footprint across sub-Saharan Africa, has secured a $26.5 million financing package in Zambia in partnership with Kwama Energy to develop the 32-megawatt Ilute solar power project in the country’s Western Province.
The financing enables Serengeti Energy, formerly called responsAbility Renewable Energy Holding (rAREH), to move the project to construction, marking a key milestone for one of Zambia’s most prominent privately financed renewable energy developments.
Private capital powers 32MW Ilute solar plant
Structured as an independent power producer, the Ilute project breaks from traditional models by avoiding sovereign guarantees or long-term offtake commitments from the state utility.
Instead, the electricity generated will be sold through a merchant power purchase agreement with GreenCo Power Services Ltd, a regional electricity trader operating within the Southern African Power Pool.
Financing structure and key investors
The $26.5 million senior debt package was arranged by Dutch development bank FMO, acting as mandated lead arranger, and brings together a blend of development, concessional and commercial capital.
Other lenders include the Sustainable Energy Fund for Africa, managed by the African Development Bank, EDFI Management Company through the EU-funded ElectriFI initiative, and Triodos Investment Management.
Enhancing regional energy supply
For Zambia, the project supports efforts to diversify an energy system heavily reliant on hydropower, which has become increasingly exposed to climate-driven drought risks.
By expanding solar generation and tapping into regional power markets, the Ilute plant is expected to enhance supply security while reducing dependence on public guarantees.
For Serengeti Energy, the deal reinforces its strategy of scaling renewable energy assets across Africa using innovative financing structures.
The Ilute project also positions the company as part of a new wave of developers demonstrating that utility-scale solar projects in Africa can attract private capital and reach financial close on commercially driven terms.
