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The Trade and Development Fund (TDF) under the Eastern and Southern African Trade and Development Bank Group (TDB Group) has granted a 3-year USD 2 million term loan to MPower Ventures Zambia Limited. This loan aims to enhance access to modern and affordable energy solutions in Zambia by importing and retailing solar products to off-grid communities.
MPower Zambia plans to expand its range of plug-and-play household solar devices and market-driven productive assets such as freezers, sewing machines, and water pumps to lower- and middle-income households, SMEs, and farmers in peri-urban and rural areas.
Gloria Mamba, Executive Director of the Trade and Development Fund, highlighted the importance of providing concessional financial solutions to SMEs, which often struggle to secure financing from formal banking channels. She emphasized the potential for such initiatives to drive change and foster sustainable development in communities across the region.
In addition to the loan, MPower Zambia will establish 50 new rural energy hubs. These hubs will enable communities to access energy for domestic and public purposes, such as lighting health centers, through last-mile extension of power from the hubs to nearby facilities. The project is expected to create 30 direct and over 500 indirect jobs, boosting productivity and economic activity while improving livelihoods in areas without access to the electricity grid.
Prof. Oliver Saasa, Chairperson of the Trade and Development Fund Board of Directors, highlighted Zambia’s Rural Electrification Master Plan, which aims to achieve a 51% rural electrification rate by 2030. He emphasized the government’s strategy to encourage private sector investment in alternative energy solutions like solar to bridge the energy gap.
Manuel Seiffe, CEO and Co-Founder of MPower, expressed gratitude for the support from TDB Group, stating that the loan will significantly aid MPower’s mission to provide clean, reliable, and affordable energy solutions in Zambia. He emphasized the company’s commitment to reaching lower- and middle-income households, SMEs, and farmers in peri-urban and rural areas.
Michael Eschmann, COO and Co-Founder, and Greg Nau, CFO and Co-Founder, emphasized the company’s dedication to sustainable development through the construction of rural energy hubs. They stressed the importance of partnerships like the one with TDB Group in driving change and promoting green growth opportunities in the region.
The loan agreement was signed during a breakfast meeting at the Intercontinental Hotel in Lusaka, attended by various government officials and CEOs. Discussions during the meeting focused on opportunities for financing renewable energy projects in Zambia.
TDB Group reaffirmed its commitment to supporting member states in achieving their national priorities by providing innovative financing solutions in critical sectors that promote sustainable development |
