Energy

Why Solar Panda Expanded to Zambia

Zambia’s electricity system is heavily dependent on hydropower, but years of drought have hammered output. According to national reports and media analyses, load shedding hours surged dramatically: in some months, blackouts lasted up to 21 hours per day. The drought, compounded by climate shocks, has left Zambia’s major hydropower stations including the Kariba North Bank and Kafue Gorge dams running well below capacity.

This power deficit has not just inconvenienced households. It has constrained businesses, especially in energy-intensive sectors like mining. In fact, ZESCO (the state utility) has reportedly generated only 1.8 GW, far below the roughly 2.4 GW of demand, translating into a significant supply gap. In short: there is a structural, persistent, and painful supply constraint and private off-grid providers can offer a life-line.

To take advantage of this gap, Solar Panda struck a major deal. On June 6, 2025, it announced the acquisition of VITALITE Zambia Limited, a pioneering off-grid solar company that was the first to introduce PAYGO (pay-as-you-go) solar in Zambia. The deal brought over 100,000 existing Vitalite customers into Solar Panda’s portfolio. 

Vitalite’s operations go beyond just solar lighting, it also distributes clean cookstoves and “productive-use” appliances (e.g., for small businesses) via its PAYGO model. By integrating Vitalite, Solar Panda gains an established local team, an existing PAYGO customer base, and deep experience navigating Zambian market realities. The acquisition strengthens Solar Panda’s vertically integrated supply chain and accelerates its scale-up in Southern Africa. 

For Vitalite, the deal is also high-impact: they get capital, infrastructure, and strategic support from a fast-growing continent-wide player. Dr. John Fay, Vitalite Zambia’s Board Chair, said the partnership will help them deepen their reach and grow more rapidly. 

That expansion is a bet on a scalable business model. The PAYGO model makes sense in Zambia’s context: many potential customers can’t afford big upfront costs, but they can manage small, periodic payments in exchange for daily access to solar power. With PayGo, Solar Panda lowers the entry barrier, while building a recurring-revenue business that can scale fast.

The acquisition also reflects wider industry dynamics: as digital solar players consolidate, early movers (like Vitalite) become attractive targets. For Solar Panda, this is a de-risked way to enter a difficult but high-potential market. 

Solar Panda started out in Kenya, where it built a strong base in solar home systems. Its business model combines design, manufacturing, and financing: they don’t just sell solar kits, they offer loan-to-own payment plans so households can pay in installments until they own the system. 

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Headquartered in Toronto, Canada, with large operations in Kenya, Solar Panda now operates in Kenya, Senegal, and Zambia. Over the past year, the company has aggressively pushed its pan-African strategy, entering Senegal and Zambia in rapid succession.

Its core mission: to deliver clean, affordable electricity to off-grid and underserved communities by combining high-quality solar products with flexible financing.

Why Zambia Is Now Central to Solar Panda’s Strategy

  1. Huge demand: With chronic, multi-hour blackouts, many Zambian homes and small businesses are desperate for reliable power.
  2. Proven PAYGO track record: Vitalite’s 100,000+ customer base validates PAYGO’s viability in Zambia.
  3. Scalability: Solar Panda’s vertical integration (manufacturing + financing + distribution) lets it scale faster and more cost-effectively.
  4. Strategic growth: Zambia gives Solar Panda a foothold in Southern Africa, helping it realize its ambition to serve “millions of households by 2030.”

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