A US$250 million financing agreement between Exergy and Mercuria will back generation and transmission projects in Zambia, aiming to expand supply, support industrial demand, and connect regional power markets.
US$250 million financing agreement between Exergy and Mercuria will fund projects by Exergy subsidiaries Lunzua Power Company and Lusitu Transmission and Distribution Company.
Funds target generation and transmission projects already underway and will contribute to Zambia’s 10,000 MW supply target by 2031.
Mercuria brings capital plus trading, market analysis, and risk-management capabilities to support Exergy’s project delivery.
Exergy and Mercuria signed a US$250 million financing deal in Lusaka to support power projects in Zambia. The funding will be directed to projects developed by Exergy's subsidiaries: Lunzua Power Company (generation) and Lusitu Transmission and Distribution Company (transmission). Several of these projects are already underway.
Exergy says the projects financed under the agreement will contribute to Zambia's target of 10,000 MW of supply by 2031. That target is part of the government's Grow Zambia agenda and is tied to consistent power supply for mining, agriculture, manufacturing, tourism, and other industries.
Regional ambitions and market linkage
Beyond national supply goals, Exergy links its trading and cross-border plans to regional objectives. The company references Mission 300, a World Bank and African Development Bank initiative to connect 300 million Africans to electricity by 2030, and positions its pipeline as supporting cross-border power trade. Exergy is developing infrastructure including a transmission highway intended to link Zambia with the East African power market.
Mercuria is entering the region's power market through this commitment. The company says Zambia's political stability, growth plan, and regional position informed its decision to invest long-term capital. Mercuria frames its contribution as more than capital: it will provide market knowledge and analytics, trading risk management, and global relationships to support Exergy's delivery. Mercuria views private capital as complementary to development finance institutions in building strategic energy infrastructure.
Exergy credits recent power sector reforms in Zambia—particularly open access to the electricity market—with enabling independent companies to build and expand. Zambia's location, bordering eight countries and being part of the Southern African Power Pool, positions it as a convenient node for regional power trade. The financing signals private investor interest in scaling energy projects in the country and region.
Immediate implications and next steps
The agreement is announced but conditional on regulatory approvals. Implementation will focus on delivering the generation and transmission projects already in Exergy's pipeline. Mercuria's support for trading and risk management suggests the partners plan active market participation as projects come online.
This US$250 million deal links a regional energy investor (Exergy) and a global commodities and energy group (Mercuria) to accelerate Zambia's power infrastructure expansion. The funding aims to help reach national supply targets and to strengthen Zambia's role in regional power trade, combining project finance with trading and operational support.
The announcement, on September 25, of a US$250 million financing deal to fund accelerated power infrastructure development in Africa has excited the global energy market and raised the pertinent question of what this could mean for industrial expansion, especially mining, cross-border infrastructure, and electricity ac
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