- GCIEP is identifying the most viable private-sector financing models to expand Zambia's national electricity transmission network and unlock the country's economic growth potential.
- The study is being conducted in close collaboration with Zambia’s national energy utility, ZESCO, the Ministry of Energy, the Office for Promoting Private Power Investment, First Quantum Minerals and Gridworks.
- Guided by recommendations, the Government of Zambia will select its preferred financing pathway and develop a structured plan for implementation.
GCIEP engagements with key stakeholders on financing, transmission and regulatory perspectives.
Zambia's economic ambitions are clear – expand the Copperbelt, accelerate agricultural growth, and industrialise at scale. Yet the national electricity transmission network lacks the capacity required to deliver power to feed this growth. With public finances under strain, a new approach to financing transmission infrastructure is urgently needed.
To address this challenge, the Green Cities, Infrastructure and Energy Programme (GCIEP) is conducting a detailed study of transmission financing options to support the Government of Zambia in attracting private sector investment with the most effective funding model. Working alongside key stakeholders, including Zambia’s national energy utility, ZESCO, the Ministry of Energy, the Office for Promoting Private Power Investment, First Quantum Minerals and Gridworks, the study draws on international experience to inform solutions tailored to Zambia’s context.
Four financing models are being evaluated: an independent transmission project, a concession arrangement, a holding company-level investment structure, and a merchant power project. Each model is assessed against real-world case studies from countries that have successfully mobilised private capital for their transmission networks. The analysis is then grounded in Zambia's specific context, including the transmission corridor expansion strategy, ZESCO's operational and financial position, and the country's broader investment environment.
Recognising that no single financing model will suit all circumstances, the study will provide a condition-specific framework to guide government decision-making, rather than a single prescriptive solution. Beyond financing structures, the study also identifies funding mechanisms that can incorporate gender equality, social inclusion and diversity to ensure these priorities are embedded within future investment approaches.
The next steps will focus on securing government endorsement, assessing implementation capacity, and developing a structured action plan around the chosen financing options.
The implications of this work are far-reaching. Greater transmission capacity enables economic growth – powering industries, supporting farmland productivity, increasing fiscal revenues, and creating jobs. For millions of Zambians, reliable electricity is not optional; it is the foundation for long-term prosperity.
The UK’s Green Cities, Infrastructure and Energy Programme is tackling climate change and extreme poverty by accelerating the delivery of sustainable green cities and climate-resilient infrastructure.
Published
23/03/26