By Derrick Silimina

The Zambia Development Agency in collaboration with the Zambian Embassy in Beijing has successfully secured a landmark investment commitment in the energy sector to a tune of approximately $1.5 billion.

In a statement, the investment by China Machinery Engineering Corporation (CMEC Group), will see the development of a diversified 900-megawatt (MW) power portfolio in Zambia.

“This investment is a major step towards achieving Zambia’s target of 10,000 megawatts of installed power capacity by 2031. It reflects growing investor confidence in our energy sector and our broader economic reforms,” said ZDA Director General Albert Halwampa.

Halwampa said as the demand for electricity in the region remains very high, presenting Zambia with a strategic opportunity to position itself as a net exporter of power while supporting domestic industrialisation, the project will comprise three components: a 300MW coal-fired thermal power plant, a 300MW solar power facility, and a 300MW wind power plant.

He noted that the investment aligns with Zambia’s ambitious vision to scale up electricity generation to 10,000MW by 2031.

In a meantime, Zambia’s Ambassador to China in Beijing Ivan Zyuulu welcomed the development, emphasising the importance of deepening economic cooperation between Zambia and China.

Zyuulu explained that the investment underscores the strong and growing bilateral relations between Zambia and China.

“It is a clear demonstration of the confidence that Chinese enterprises have in Zambia’s investment climate. The Embassy will continue to facilitate strategic partnerships that translate into tangible development outcomes for our country,” said Ambassador Zyuulu.

The Zambian envoy disclosed that CMEC Group has indicated that it will visit Zambia in June this year to commence feasibility studies of the opportunity, adding that the group has the financial and technical capacity to commence construction of all three power plants simultaneously.

ZDA and the Zambian Embassy in Beijing are on a joint investment promotion roadshow in China to position Zambia as a prime investment destination.