Zambia has clinched a $1.5 billion agreement with China Machinery Engineering Corporation (CMEC) to expand the country’s electricity generation capacity by 900 megawatts — a transformative injection of infrastructure financing that authorities hope will end years of debilitating power shortages and position Zambia as a regional electricity exporter.
The deal, signed with the Zambia Development Agency, supports the government’s target of reaching 10,000 megawatts of installed power capacity by 2031. It arrives as Zambia grapples with escalating electricity deficits driven by prolonged droughts that have severely reduced hydropower output and triggered widespread load-shedding across key economic sectors.
The 900 MW will be developed through three separate 300 MW projects — one each in solar, wind, and coal-fired thermal power — creating a hybrid energy mix designed to deliver both renewable expansion and reliable baseload generation. CMEC has committed to implementing all three projects simultaneously rather than sequentially, a strategy intended to compress construction timelines and accelerate integration into the national grid.
Technical teams from CMEC are expected to arrive in Zambia by June 2026 to commence feasibility studies, environmental assessments, and site selection ahead of construction works. Energy sector analysts say that once operational, improved electricity reliability could substantially enhance Zambia’s industrial competitiveness — particularly in mining, manufacturing, and agro-processing, sectors that have been heavily constrained by power rationing in recent years.
Beyond domestic gains, the government sees the agreement as a springboard for positioning Zambia as a net electricity supplier within the Southern African Power Pool, creating new export revenue streams and deepening regional energy integration. Officials described the deal as a demonstration of continued investor confidence in Zambia’s infrastructure and economic reform agenda, as well as a reflection of deepening economic ties between Lusaka and Beijing.
Source: angolanminingoilandgas.com