Standard Chartered has partnered with US to deliver a term loan worth $60 million to Zambia’s Electricity Supply Corporation (ZESCO) to finance capital expenditure for the Lusaka Transmission and Distribution Rehabilitation Project.
The loan is one of the largest facilities that US Agency for International Development (USAID) delivered within President Barack Obama’s “Power Africa” partnership since the campaign’s launch in 2013.The loan will also provide bridge financing to facilitate new connections to the grid.
USAID/Zambia Mission director, Michael Yates, said Power Africa was a broad partnership which aimed to boost economic development by providing access to electricity to homes and businesses across Africa.
“This is one of our largest commitments in Africa to date, and will enable us to meet a critical need for a quarter of a million Zambians and the economy as a whole,” said Yates.
ZESCO’s Managing Director, Victor Mundende, said USAID and Standard Chartered’s support had already delivered more than 15 000 new power connections.
“Furthermore, some of the funds provided will be used for other scheduled power system upgrades, contributing to new and existing connections to homes and businesses across the country,” Mr Mundende said.
Africa accounts for around a sixth of the world’s population, but only generates 4 percent of its electricity.
This is the bank’s second Power Africa partnership to benefit Zambia, with the first being Standard Chartered’s Private Equity investment in Zambian Energy Corporation.
Source: The Herald