A $1.5 billion funding deal has been secured by Zambia from China Machinery Engineering Corporation (CMEC) to boost electricity generation by 900 megawatts, supporting the country’s long-term goals for energy security and infrastructure expansion.
The deal, concluded with the Zambia Development Agency, aligns with a wider target to raise national installed power capacity to 10,000 MW by 2031. This comes as Zambia continues to face power shortages caused by extended droughts that have affected hydropower production and led to recurring load-shedding across major sectors.
Electricity generation in Zambia is largely dependent on hydropower. However, shifting climate conditions and repeated dry periods have lowered water levels in key reservoirs, exposing vulnerabilities in supply and driving the need to diversify energy sources.
The additional 900 MW will be developed through three separate projects of 300 MW each, covering solar, wind, and coal-fired thermal energy. Authorities say this mix is designed to balance renewable energy growth with stable baseload power, ensuring reliability regardless of weather patterns.
CMEC intends to roll out the projects concurrently rather than in stages, a move expected to speed up completion timelines and allow quicker integration into the national grid. Company experts are expected in Zambia by June 2026 to begin feasibility studies, environmental evaluations, and site selection ahead of construction.
Analysts in the energy sector believe that improved power reliability could enhance Zambia’s industrial performance, particularly in mining, manufacturing, and agro-processing, which have suffered from electricity rationing in recent years. A steadier power supply is also likely to lower business costs and boost productivity.
The government sees the project as an opportunity to position Zambia as a regional electricity exporter within the Southern African Power Pool. With increased capacity, the country could supply power to neighbouring nations facing similar shortages, opening up new revenue opportunities.
Officials say the agreement signals strong investor confidence in Zambia’s reform and infrastructure agenda, while also highlighting growing economic ties between Zambia and China, especially in key areas like energy development and industrial growth.