| Summary: | Bankability is central to understanding how Zambia’s ambitious energy sector expansion plans can be achieved. With private sector finance being a necessary ingredient for rapid infrastructure delivery, this policy brief explores what key energy sector stakeholders in Zambia think are the most promising routes to achieving improved energy project bankability. We find that progress has been made in core areas, with market liberalisation reforms and improved creditworthiness for the state-owned energy utility (ZESCO) setting the conditions for Zambia to access new pools of concessional and commercial finance. In order to consolidate progress, this policy brief points to four concrete priority areas to reduce investor risk: (i) liberalised offtake agreements, (ii) increased and differential tariffs, (iii) the creation of a ‘one-stop shop’ for permitting, and (iv) diversified access for investors and novel instruments. These steps are crucial to derisking projects and raising revenues, thereby lowering the cost of capital available to energy project developers in Zambia.
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