In support of President Hakainde Hichilema’s decision to accelerate deployment of mini-grids through the 1000 Mini-grid Initiative, the Zambian government have today unveiled a new financial mechanism to support mini-grid developers: the Demand Stimulation Incentive.

The two-day event, held under the theme “Accelerating ICT Industry in Zambia” was a continuation of the just-ended Mobile World Congress held in Barcelona, Spain last month which brought together officials from the government, mobile phone service providers and information technology providers.

The first phase of the programne runs from 2024 to 2026 and will provide a $100 million grant. These finances will help improve ZESCO’s financial performance and operational reliability, and strengthen electrification financing mechanisms supporting the Rural Electrification Authority (REA).

MPower Ventures Zambia Limited intends to utilize the loan to import and retail solar products, diversifying their inventory to include plug-and-play household solar devices and market-driven productive assets. Furthermore, MPower Zambia plans to establish 50 new rural energy hubs, facilitating energy access for both domestic and public use.

The Government of Zambia has purchased 2,000 solar-powered milling machines. This is under the Presidential Solar Milling Plant Initiative. The programme started in December 2015. So far 100 solar milling plants are already set up in five districts in the province. These are Chadiza, Lundazi, Katete, Vubwi and Chipata.

In Zambia, the Dutch financial institution is opening a $2 million credit line for RDG Collective. The company, based in the capital Lusaka, supplies solar photovoltaic systems for the electrification of rural households and for the productive use of electricity.

Latest research from international development charity SolarAid’s repair pilot in Zambia shows that localised repair presented a viable solution to 91% of the solar products that had fallen into disrepair, sitting on shelves across the country. This points to the potential of repair of 110 million non-functioning solar products across Africa.

The removal of customs duty for full electric vehicles will help reduce the costs of electric vehicles in Zambia, making them more competitive with ICE vehicles from an upfront purchase point of view. Once approved, these measures will be implemented on 1 January 2024.

Zambia’s solar energy industry has undergone a tremendous transition in 2023, opening the way for a future that is cleaner, greener, and more robust. The nation’s dedication to eradicating energy poverty is one of the main forces behind Zambia’s solar energy revolution. Solar power has changed the game in rural areas with limited access to power.