Dutch development bank FMO plans to provide up to $80 million in financing to Solarcentury Power (SCP) to refinance operating solar assets in Zambia and Namibia, according to project documents seen by DevFiNews.
The proposed financing will also support the development of a planned 113-megawatt solar project in Botswana, according to project information released by the lender, FMO said.
The proposed financing package comprises a committed facility of $40 million and a prospective uncommitted facility of a further $40 million.
The committed facility will be used for renewable energy assets in Zambia and Namibia, while the uncommitted portion could finance the Lotsane solar plant in Botswana.
FMO said nearly 90% of the electricity generated through projects supported by the committed facility will come from Zambia, underscoring the lender’s focus on scaling renewable energy in least developed countries and expanding access to reliable power.
The investment comes as countries across Southern Africa seek to add generation capacity amid persistent power shortages, growing industrial demand, and increasing pressure on hydropower systems from recurring droughts.
The financing is also expected to support electricity trading across the region through the Southern African Power Pool (SAPP).
SCP, a regional renewable energy platform owned by Solar Century Africa Limited and ultimately backed by BB Energy Group, develops, constructs, and operates utility-scale solar photovoltaic projects across Africa.
The company focuses on projects that sell power into the regional power pool as well as directly to large commercial and industrial customers through bilateral agreements.
FMO said the underlying projects are classified as 100% green investments and contribute to the United Nations Sustainable Development Goals on affordable and clean energy, climate action, and reduced inequalities.
The projects are also expected to strengthen the development of regional energy markets within the Southern African Development Community.
FMO, the Dutch entrepreneurial development bank, has assigned the investment a Category B+ environmental and social rating, citing potential impacts related to biodiversity, land acquisition, water resources, and labor issues associated with the development and construction of solar projects.
The lender said its due diligence will focus on livelihood impacts arising from land acquisition, water demand in areas facing drought and water scarcity, workers’ rights, and risks of gender-based violence and harassment linked to labor influx during construction.
The proposed transaction highlights the growing role of development finance institutions in mobilising long-term capital for renewable energy infrastructure across Africa as governments seek to improve energy security, attract private investment, and advance decarbonisation goals.
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