Lunzua Power Company to Acquire 27% Equity Stake in Western Power Company

Lunzua Power Company Limited (“Lunzua”) has signed a shareholders’ agreement to acquire a 27 per cent shareholding in Western Power Company Limited (“Western Power”), in a calculated transaction to complete the development of the 180MW Ngonye Falls Hydroelectric Power Project.

The investment marks a significant step in Lunzua’s strategy to expand its portfolio of clean, dispatchable power generation across Zambia and the Southern African market, and positions Lunzua as a long-term partner in Zambia’s energy transition.

Under the terms of the transaction, Lunzua will fund the development costs of the Ngonye Falls project in order to hold 27% of Western Power alongside existing shareholders, Africa Power Projects Limited (“APP”) and the Private Infrastructure Development Group – through InfraCo Africa Business Development Limited (“InfraCo”) – and the Barotse Royal Establishment (“BRE”), who retain a combined 73% interest. Lunzua will join the Board of Directors and take an active role in the Ngonye Falls project development, construction, and operations.

The acquisition advances several of Lunzua’s strategic priorities, including developing, owning and operating clean, baseload-complementing generation; securing long-term, contracted cash flows; creating market access and pipeline, and energy security and development impact by supporting Zambia’s ambitions to expand generation capacity and improve electricity access.

The Ngonye Falls hydropower project is located at the Ngonye Falls near Sioma, about 110 kilometres northwest of Sesheke in the Western Province of Zambia. It is expected to reach financial close by the first quarter of 2027, with construction commencement scheduled shortly thereafter. Operations are targeted to begin in the first half of 2030.

Martin Kasemuka, Chief Executive Officer of Lunzua commented:

“This investment reflects our conviction that well-structured hydropower will play an essential role in Zambia’s energy future. By adding Ngonye’s 180MW of clean, locally generated electricity, Lunzua strengthens Zambia’s generation capacity and, alongside the broader investment underway in the sector, contributes to a more secure and resilient national supply. Importantly, capacity of this scale helps move the country toward a surplus position, creating the headroom to realise Zambia’s ambition to be a dependable power supplier for the region. We are proud to partner with Western Power in building that future.”

Sipho Phiri, Executive Chairman of Western Power said:

“As a Zambian led development, it has always been our object to retain as much equity as possible within Zambia and it is a momentous occasion that Lunzua, a Zambian company, is investing in an equity stake alongside APP, InfraCo, and the BRE. In addition, it fulfils part of the mandate of our long-term and patient partner, InfraCo, by demonstrating that early provision of development capital will lead to the participation of private equity into the project. As we enter the final development phase of this project, we welcome Lunzua aboard.”

Tom Younger, Managing Director of Western Power said:

“Our partnership with Lunzua is a strong vote of confidence in the Ngonye Falls project and in Zambia’s power sector. Their capital, technical expertise, and long-term commitment bring the necessary impetus to ensure that we complete the development phase and move on to build and operate the project to the highest international standards. This project has always been about bringing much-needed generation onto the grid and helping Zambia attain energy self-sufficiency and supply power across the region.”