Africa-Press – Zambia. The Rural Electrification Authority – REA in collaboration with the Development Bank of Zambia – DBZ has launched an off-grid loan facility aimed at increasing electricity access in targeted rural areas in Zambia and enhancing private sector participation in rural electrification programs.
The launch of an off-grid loan facility is under the Electricity Service Access Project – ESAP Credit Line Facility which is funded by the World Bank. Energy Minister Peter Kapala said that the project will support private sector-led electrification of rural communities.
Speaking during the launch of the project in Lusaka today, Mr Kapala who graced the launch as the guest of honour mentioned that the Electricity Services Access Project – ESAP Credit Line Facility will also provide necessary financing for private sector entities to implement rural energy access initiatives.
“ESAP is a key step towards addressing one of the key barriers to increasing access to electricity in rural areas,” he said
And the Rural Electrification Authority – REA Chief Executive Officer Eng. Chanda said in his opening remarks that it is their desire to see to it that this Credit Line will add to what the Zambian government is already doing in the rural space to accelerate the livelihood of the people in rural areas.
And Development Bank of Zambia – DBZ Acting Managing Director, Maybin Muyawala disclosed that the initiative is one of the many innovations the Bank has embarked on to develop and provide financial solutions to social, economic and environmental problems.
Mr Muyawala further disclosed that the role of DBZ is to manage US2.5 million line of credit for off-grid renewable projects to private sector which will be accessed through the Zambia National Commercial Bank – ZANACO, adding that this is a pilot project that will ensure that the Bank works closely with the private sector and the government to increase energy access in the country and develop a robust bankable pipeline that will be subsequently unlock further investments in the renewable energy sector.
“ESAP Credit Line Facility is the Bank’s first credit facility specifically targeted for renewable energy projects, which is an important achievement for the Department of Energy, REA, ZANACO, World Bank and DBZ in supporting the government’s effort to increase energy access,” he said
He explained that DBZ has been actively involved in ESAP since its inception in 2017, the project being funded by the World Bank and REA as an implementing Agent, the overall objective of the project is to increase electricity access in targeted rural areas in Zambia.
Mr Muyawala has since commended REA and the World Bank for considering the Development Bank of Zambia in this partnership and providing support to ensure that Bank was ready to diligently execute its role as a prefered partner for development, adding that he looks forward to strengthening their partnership as active players in the country’s climate finance space.
Meanwhile, World Bank Representative Christopher Saunders said that the Bank will continue supporting the efforts of the government and the private sector in resolving the challenges the country is facing such as lack of adequate energy.
Mr Saunders mentioned that establishment of this credit line under the World Bank Finance Electricity Service is a project whose objective is to increase electricity access in targeted rural areas and supporting an enabling environment for accelerated national electricity across the whole Zambia.
“The project supports the expansion of the national grid for rural electrification, grid connections as well as many grids and energy kiosks project development in rural areas in addition to the credit line that will supplement all of these efforts,” he said
And ZANACO Managing Mukwandi Chibesakunda said that the initiative has come at the right time when Zambia needs adequate investment in the energy sector.
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