By Derrick Silimina

The Government has launched a transformative national infrastructure initiative that converts fiscal gains achieved through sovereign debt management into long-term investment in the country’s energy sector.

In a statement by the Office of the Secretary to the Treasury, the 15-year Grid Resilience Programme, forms the centerpiece of Zambia’s innovative debt-for-energy conversion framework, which emerged from the successful repurchase of Zambia’s outstanding $ 1.365 billion 2053 Bond B Notes.

“The transaction was supported through a $ 600 million facility from the African Development Bank (AfDB) and $ 550 million provided by the Bank of Zambia. With the savings unlocked by retiring this debt, the Government will channel $ 275 million over the next 15 years into the Grid Resilience Programme, transforming a portion of future debt-service obligations into strategic investment in Zambia’s electricity distribution network,” the statement stated.

The Office of the Secretary to the Treasury noted that the initiative represents one of the most significant examples of debt conversion into productive infrastructure investment in the country’s recent economic history.

The statement further highlighted that power generation and supply remains indispensable to the expansion of mining, agriculture, manufacturing, tourism, digital services, and the broader Small and Medium Enterprises (SME) sector, and is key in supporting households, schools, health facilities, and other public services across the country.

As Zambia pursues the ambition of becoming a regional energy hub while increasing copper production and diversifying the economy, a modern electricity network will be essential to sustaining industrial expansion and attracting investment, GreenCo Power Services, a member of the Africa GreenCo Group and a recognised renewable-energy off-taker, electricity supplier, and trader within the Southern African Power Pool, has been identified to coordinate implementation of the programme.

“The implementation of the programme will be overseen by ZamGridCo, a newly established entity, through a dedicated institutional framework. The framework will be governed by a board comprising private-sector representatives alongside Government nominees. This governance structure has been designed to promote transparency, accountability, technical excellence, and efficient delivery throughout the life of the programme.”