The Indian Renewable Energy Development Agency (IREDA) has made its first foray into Africa’s renewable energy market, approving a $22.5 million loan to support a 100-megawatt solar PV project in Zambia’s Serenje district. The deal, completed on January 16, 2026, represents a strategic move by India to expand its footprint in global clean-energy finance.
The financing will be directed to Swarna Solar Limited, a Zambian renewable energy developer. While IREDA has not disclosed the total project cost or full financing structure, the loan marks a milestone for India’s international renewable energy ambitions through its arm, IREDA Global Green Energy Finance IFSC Ltd (IGGEFIL), based in GIFT City. IGGEFIL aims to mobilize international capital for solar and other clean-energy projects outside India.
Zambia’s energy landscape has long been dominated by hydropower, which accounts for roughly 85% of the nation’s electricity supply, according to the Zambian Ministry of Energy. While hydropower has provided low-cost electricity, it leaves the system highly vulnerable to climate variability. Recurrent droughts over the past decade have led to rolling blackouts and electricity rationing, underscoring the need for solar diversification. The Serenje project, once operational, is expected to contribute approximately 250 GWh annually, enough to power around 100,000 households and reduce reliance on hydro during dry periods.
“This is a significant step in India’s engagement with Africa’s clean-energy transition,” said a spokesperson for IREDA. “By supporting solar capacity in Zambia, we are not only strengthening regional energy security but also demonstrating the potential of cross-border renewable energy finance.”
The loan situates India among a growing list of international players financing African renewable energy. China has long dominated the market, supplying both capital and equipment for large-scale projects across the continent. European institutions, including the European Investment Bank and development arms of Germany and France, have also been active in funding solar and wind initiatives. IREDA’s entry signals rising competition and diversification of financiers willing to support Africa’s energy transition.
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Zambia has committed to expanding its renewable energy capacity as part of the Zambia Renewable Energy Strategy, targeting 600 MW of solar PV by 2030. Analysts say new financing options, such as IREDA’s loan, are crucial for bridging the gap between project proposals and bankable implementation. “Access to international financing at favorable terms is key to attracting private developers and scaling up solar deployment,” said James Mwila, an energy analyst based in Lusaka.
The Serenje project is part of a broader regional trend toward solar adoption. According to the International Renewable Energy Agency (IRENA), Africa installed nearly 12 GW of new solar capacity in 2025, with countries like South Africa, Morocco, and Egypt leading deployment. Zambia’s growing solar ambitions align with this trend, providing a hedge against hydropower risks while supporting industrial growth and household electrification.
As IREDA seeks to establish a foothold, further deals in Africa may follow. Success in Zambia could serve as a blueprint for Indian engagement in markets where renewable energy finance is rapidly expanding, particularly in regions with high solar potential and climate-sensitive energy systems.
By Thuita Gatero, Managing Editor, Africa Digest News. He specializes in conversations around data centers, AI, cloud infrastructure, and energy.
