Zambia has secured a $1.5 billion investment from China Machinery Engineering Corporation (CMEC) to expand its electricity generation capacity by 900 megawatts (MW), in a major step toward strengthening national energy security and supporting long-term infrastructure development.
The agreement, signed with the Zambia Development Agency, supports the country’s broader target of reaching 10,000 MW of installed power capacity by 2031.
It comes as Zambia continues to face electricity shortages driven largely by prolonged droughts, which have reduced hydropower generation and led to periodic load-shedding across key sectors of the economy.
Hydropower currently dominates Zambia’s electricity mix but increasing climate variability and declining water levels in major reservoirs have exposed the system’s vulnerability.
As a result, authorities are accelerating efforts to diversify energy sources and improve grid resilience.
Under the new investment plan, the additional 900 MW will be developed through three 300 MW projects covering solar, wind, and coal-fired thermal power.
This hybrid energy mix is designed to combine renewable energy expansion with reliable baseload generation, ensuring a more stable and continuous power supply regardless of weather conditions.
CMEC intends to implement all three projects simultaneously rather than in phases, a strategy expected to shorten construction timelines and speed up integration into the national grid.
The company’s technical teams are scheduled to arrive in Zambia by June 2026 to begin feasibility studies, environmental assessments, and site selection ahead of construction.
Energy sector analysts say improved electricity reliability could significantly enhance Zambia’s industrial competitiveness, particularly in mining, manufacturing, and agro processing, which have been constrained by power shortages and rationing in recent years.
A more stable energy supply is also expected to lower operational costs and boost productivity across the private sector.
Beyond domestic benefits, the government sees the expansion as an opportunity to position Zambia as a regional electricity exporter within the Southern African Power Pool. Increased generation capacity could allow Zambia to supply power to neighboring countries facing similar energy deficits, creating new revenue streams and strengthening regional energy integration.
Officials have described the agreement as a sign of continued investor confidence in Zambia’s infrastructure and reform agenda.
It also reflects deepening economic cooperation between Zambia and China, particularly in strategic sectors such as energy development and industrial capacity building.
