Globeleq, the leading independent power company in Africa, has signed a share purchase agreement with Norfund, the Norwegian development institution for the proposed acquisition of a 51% equity stake in the Zambian entity, Lunsemfwa Hydro Power Company (LHPC). LHPC operates two hydroelectric power plants totaling 56MW and is constructing a 20MW solar PV project. The remaining 49% of LHPC is owned by Wanda Gorge Investments, a Zambian based infrastructure investment company.
Based in Kabwe in Zambia's Central Province, LHPC sells power to the Zambia Electricity Supply Corporation through a power purchase agreement and a portfolio of private customers, which include Copperbelt Energy Corporation and Jubilee Metals. It also holds a Southern African Power Pool (SAPP) electricity trading license.
This agreement marks a pivotal step for Globeleq's Zambian energy market entry where Globeleq can provide solutions to a range of public and private energy intensive consumers. This acquisition also represents the company's first investment in hydropower in Africa, further enhancing its diversified renewable portfolio which includes solar, wind, battery energy storage (BESS), hybrid solar plus BESS, and geothermal power plants. Zambia is a priority country for Globeleq's growth strategy where the company is leading the development of a 400MW+ greenfield portfolio of solar, wind power, BESS and hybrid projects, including its 54MWp Kafue solar project awarded under the GETFiT Zambia programme.
The completion of the transaction is expected to be finalised in the second half of 2025.
Jonathan Hoffman, Globeleq's CEO commented:
"We are excited about this opportunity to enter the Zambian market. LHPC's established team, operations and trading capabilities combined with our extensive experience in Africa, create a strong platform to support Zambia's broader energy objectives and deliver solutions to a range of energy consumers in the region."
Øystein Øyehaug, Investment Director at Norfund added:
"In seeking a partner for this transition, our priority was to find the right investor one with the capability to manage well, enhance operational performance, elevate standards, and unlock the long-term growth potential of LHPC. With more than 20 years of experience operating in Africa, we are confident that Globeleq is the right fit to lead the LHPC into its next chapter."
Media Enquiries
media@globeleq.com (Fiona Gonyea)
About Globeleq
Globeleq, which is owned by British International Investment, the UK's development finance institution, and Norfund, Norway's development finance institution, is the leading developer, owner and operator of electricity generation in Africa. Since 2002, its experienced team of professionals have built a diverse portfolio of independent power plants, generating 1,794 MW in 17 locations across seven countries, with a further 485 MW in construction and more than 2,000 MW of power projects in development.
More details at www.globeleq.com.
About Norfund
Norfund is the Norwegian Investment Fund for developing countries with a mission to create jobs and improve lives by investing in businesses that drive sustainable development. Owned and funded by the Norwegian Government, Norfund is the Government's most important tool for strengthening the private sector in developing countries and reducing poverty. Norfund's committed portfolio amounts to USD 3.8 billion, with investments across Sub-Saharan Africa, South/Southeast Asia, and Latin America. Additionally, Norfund manages the Norwegian Climate Investment Fund, which focuses on reducing or avoiding greenhouse gas emissions by investing in renewable energy in developing countries with large emissions from coal and other fossil fuel production. For more details, please visit: www.norfund.no
