Grace Ashiru
Solarcentury Africa is set to receive an $80 million financing package from FMO, the Dutch entrepreneurial development bank, to expand its solar energy portfolio across Zambia, Namibia and Botswana. The financing is designed to support both existing and future solar assets in Southern Africa while strengthening regional energy security.
The package includes a committed $40 million facility and a further $40 million uncommitted facility. The committed portion will be used to refinance existing solar projects in Zambia and Namibia through a mini-perm debt structure. The additional facility is expected to support future projects, including the planned 113 MW Lotsane Solar Plant in Botswana.
The deal is significant because it supports a market-based electricity trading model through the Southern African Power Pool. Instead of depending only on long-term government-backed power purchase agreements, Solarcentury Africa’s projects are designed to sell electricity into the regional market. This creates more flexibility and supports cross-border electricity trading.
Solarcentury has already shown how this model can work through the 25 MWp Mailo Solar Plant in Zambia and the 19.3 MWp Gerus Solar Farm in Namibia. Both facilities are supplying clean power into the regional market.
The investment also responds to wider energy challenges in Southern Africa. Zambia, in particular, remains heavily dependent on hydropower and has faced shortages during drought periods. Expanding solar generation can help reduce pressure on hydropower systems, improve electricity reliability and support a more diversified energy mix across the region.
