Welcome And Why Minigrids Matter

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Hello and welcome to the Minigrid Moment. Powering communities across Africa. I am Laminine, CEO of the Africa Minigrid Developers Association. At Amda, we believe minigrids are more than just infrastructure. They are catalysts for change, driving opportunity, resilience, and inclusive growth across the continent. The Minigrid Moment series is about telling those stories of visionaries, innovators, and communities transforming lives through reliable, clean energy. This podcast was made possible with support from Inensus and the World Bank's Energy Sector Management Assistance Program. Their commitment to advancing sustainable energy access continues to power stories like these ones, showcasing how innovation and community-driven solutions are transforming lives across Africa. I invite you to listen, learn, and enjoy the podcast.

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Welcome

Zambia’s Energy Gap And The Case

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to the Minigrip Moment, Powering Communities Across Africa, the podcast where we support light pioneers transforming energy access across the continent. I'm your host, Lucky joy Muli. Today, we travel to Zambia to tell the story of Power Corner Zambia, which is part of the Ignite Energy Access Group and how smart solar mini-grids are transforming rural communities. According to the World Bank, access to electricity in Zambia has risen from 30% in 2017 to nearly 50% today. That's significant progress. However, half of the population remains unconnected. With Zambia's population projected to reach 26 million by 2030, energy demand is only increasing. To achieve universal access by 2030, minigrids will need to play a central role, especially in a vast country with low population density. With an average of just 24 people per square kilometer, Zambia is among the least densely populated countries in the world. Decentralized renewable energy, particularly solar-powered mini-grids, are not just an alternative. They are the least cost, most practical solution. Ignite Energy Access is a leading renewable energy provider delivering reliable, affordable, and sustainable electricity to millions across Africa. Mini-grids are central to its strategy in markets where grid extension isn't viable. In Zambia, Ignite supports rural communities through smart solar minigrids, powering livelihoods, businesses, schools, and health centers. Recently, the company commissioned 15 new

Ignite’s Smart Solar Minigrids Approach

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solar minigrids, bringing its total operational sites in Zambia to 31. The mini-grids are part of the European Union finance increased access to electricity and renewable energy production program, expanding decentralized access in underserved communities.

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Minigrids are closing the energy access gap, particularly in rural and hard-to-reach communities. Extending the national grid to these areas is often not economically viable due to the long distances and the low population densities. So Minigrid allows us to decentralize power generation to deliver reliable clean energy directly to these communities that would otherwise remain unsurfed for many, many years. In Zambia, particularly, even though access to electricity is improving, we still see that there's a significant portion of the population that doesn't have power. Our goal as Ignited Group and Power Corner Zambia is to bridge the gap by deploying smart solar mini grids that are not only sustainable but they're also scalable. These systems do not just provide lighting, they're able to grow economic activities in the different communities. We are powering small businesses, we're supporting farmers, we're improving access to education through electrified schools. Now students and pupils are able to have computer classes, they're able to have prep in the evening for boarding schools in these areas. But furthermore, we're also strengthening healthcare delivery in the rural clinics. Ultimately, we are building mini grids in Zambia because energy access is a catalyst for development. When communities have reliable electricity, it unlocks opportunities. It drives strong productivity, it also improves the quality of life. And for us, it's not just about infrastructure in the sites, it's about empowering communities and also supporting long-term inclusive growth.

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Ignite has set an ambitious target to bring clean, affordable energy to 100 million people in Africa by 2030. Reaching remote communities requires innovation but also extreme affordability, and the impact is deeply human. The company uses smart metering and remote monitoring systems to ensure efficiency and reliability. Beyond lighting homes, they focus on productive use of energy, powering refrigeration, irrigation, and providing energy solutions tailored to small enterprises. Communities served by minigrids access electricity through a power as a service model, meaning Ignite owns, operates, and maintains the infrastructure while customers simply pay for the energy they use.

Community Voices And Business Impact

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Hear the voices from Zambia.

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Since we brought electricity, the business has been doing well. Before we had power, we did not have a fridge. When customers came to the shop, there were no cold drinks available and business was slow. Now that we have a fridge, we are able to sell cold drinks. We sell products such as mojo, yes drinks, and different types of relish. This has helped to improve our business. Since getting electricity, things have been moving well, and we have seen positive growth in the business.

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Customers can easily find a variety of cold beverages. In fact, some of the drinks stored at the bottom are even frozen. I am very grateful for the electricity services being provided in this area as they have helped improve both our business and our community.

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The good thing I have seen from having electricity and using a fridge is that since electricity came to our area, we have been very happy and grateful. The business has improved, especially because of the fridge. We now stoak cold drinks and different types of relish. Even though the fridge may not always look full, people are very grateful for the service it provides. Before we had electricity, it was difficult to start a business selling relish. Now we are able to keep fish, sausages, and other products in the fridge. People no longer have to travel long distances to buy these items. In the past, they had to go places such as Chipata and other surrounding areas. Today, they can find frozen relish close to home. The fridge cools the drinks very well and keeps frozen products properly frozen. When customers buy frozen items, they can leave them out for a short time to throw before use. People are very happy and grateful for this service. We are also making more money. Before, people could only buy a few items such as soya pieces and carpenta. Now we are able to provide many different types of relish which has helped the business grow.

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My name is Kaselo Village, Zeferino Tembo, residing in Kaselo Village. I have a sunflower shelling business. Before they gave me this sheller, we used to travel very far to shell the sunflower, almost 50 kilometers from here to the main turd road. Once the sheller arrived, I started shelling. And then I realized that the shelling machine is very powerful that I can shell around 50 bags per day. I wish electricity could have been extended further so that all the people in this village can develop. There is a lot of improvement at my home. I have bought a motorbike, a bicycle, and my children attend school without challenges. The electricity is so powerful. This is amazing. We are so grateful to the electricity company.

The Financing Stack Behind Deployment

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A 6 million euro grant from the European Union under the Global Gateway Initiative, a 7.5 million dollar debt facility from the Facility for Energy Inclusion managed by Cygnum Capital, a $12 million equity injection from Ignite Energy Access. The grant was channeled through Zambia's Ministry of Finance and National Planning and managed by the National Authorizing Office. These mini-grids contribute directly to sustainable development goal 7, affordable and clean energy.

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Collaborations and partnerships in project financing where grant meets equity, meets debt, are very important, especially for mini-grid projects. I simply put, um minigrid projects' intention is to serve the rural parts of the country. The parts of the country that are not supplied by the national grid, the parts of the country that have the lowest household incomes, and as such, the various financial streams for the project help to improve the financial model and make the project sustainable and bankable. If we get to the grant financing of mini-grid projects, this essentially helps to support equipment purchase if it's a CapEx-based grant. When we talk of the debt facility, of course, it's going to improve the financial models by reducing the weighted average cost of capital, but also increasing the net present value and the internal rate of return. Of course, ensuring that your debt envelope is at the lowest possible interest rate without impacting so much on the payback of the debt facility aburdening the project. And of course, the equity aspect, which basically speaks more to the shareholder and their commitment to ensuring that we are not just providing energy access to the most vulnerable people in our societies, but adding that sustainability and bankability to the projects to ensure that we can replicate these particular models across the many areas of our communities that still lack this energy as a service or access to energy.

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Over 50% of rural Zambians still lack reliable electricity. Extending the grid to remote areas remains economically unfeasible. Mini grids, powered by solar PV and battery storage, offer scalable, proven solutions. Thousands have been deployed globally, including in Zambia. Government policy is evolving positively. Zambia has established clearer frameworks to enable private sector participation and improve bankability.

Regulation, Risk, And Rural Build Costs

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Energy demand in the country will continue rising due to agriculture expansion, mining growth, particularly copper, industrialization, urban and residential expansion. However, challenges remain. Financing gaps persist. Estimates suggest billions more are required globally to meet 2030 targets. Demand risk is also significant. Infrastructure alone is not enough. Communities need access to appliances, capital, and technical support to fully utilize electricity.

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While we see many opportunities growing in the mini-grid sector in Zambia, we're still faced with quite a number of challenges which we need to overcome. And these border around the regulation aspect, procurement aspect, and of course making the whole mini-grid operation commercially viable. Regulator, in this case, Energy Regulation Board, used to heavy-handedly regulate the minigrids irregardless of the size of the minigrid. We were regulated at the standard of the national grid, which made mini-grid deployment extremely difficult. Coming into 2024, there was an initiative by government to deregulate activities under 250 kilowatt systems through the statutory instrument 41, which then enables minigrid developers to deploy the mini-grids at a faster pace. While that is a positive for the developer who is conducting their construction, because you no longer require license construction permit uh from the regulator, it then increases the risk from an investor standpoint because there is nothing guiding the operation of mini-grids, especially in a deregulated environment. Which means sourcing for financing with a debt equity becomes a challenge because your investor requires to see what sort of regulation is in place to make sure that the investment is safeguarded. Zambia being a very large country, the implication on construction tends to be significant, especially when we're deploying the distribution network. Many grid development supports communities that are tightly clustered because then you are able to reduce on the size of the distribution network. But because we're dealing with communities that are slightly sparsely populated, we tend to end up with very large distribution networks which increase our CapEx investment.

Zambia’s 1000 Minigrid Initiative

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Two years ago, at COP28 in Dubai, Zambia unveiled its ambitious 1000 minigrid initiative. Launched under President Hakainde Hichilema, the program aims to deploy 1,000 minigrids across rural Zambia in the coming years. The goal? Connect over 1 million Zambians, powering homes, schools, clinics, and local enterprises. The initiative aligns with Zambia's Vision 2030 development strategy and seeks strong private sector participation.

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This initiative, I personally believe, is going to have significant benefits where we have facilities such as the schools and the clinics that did not have electricity prior to our introduction of the 30 milligrids, for example, in the areas that we've deployed. The schools now are able to have preparatory lessons prep in the evenings because there's lighting now that is available and security for the students to be able to study. In addition to that, the clinics are now able to have the maternity wings open 24-7, where previously it was difficult to have the ladies that needed the facility at night because they wouldn't be powered, even when there was a standalone system. And also the quality of medication now can be sustained with consistent electricity that is powering the refrigeration systems that are in the clinics to preserve these medications that deploy to these communities to be provided to the communities. And the entrepreneurs are able to add value by either producing the brand that is coming from the maize and sell it to livestock farmers, which is additional income because that's a byproduct, or just milling the maize for the community at a reasonable price. Where there's lack of electricity or basic necessities, there is a tendency for civil servants to request a transfer to a more decent environment where at least they can access electricity.

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Ignite's

Mission 300 And Closing Notes

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work aligns with Mission 300, an ambitious initiative to connect 300 million Africans to electricity by 2030. Led by the World Bank Group and the African Development Bank, Mission 300 unites governments, private investors, and development partners to accelerate access and attract private capital. Ignite Energy Access began with a bold idea that investing in Africa's hardest-to-reach communities isn't risky, it's essential. Over the past decade, the company has reduced carbon emissions, expanded energy access, and demonstrated that mini-grids and distributed renewable energy solutions can unlock economic transformation. From powering small enterprises to strengthening health systems and improving education outcomes, the ripple effects are profound. And yet, this is only the beginning. Thank you for listening to the Mini Grit Moment, Powering Communities Across Africa. Join us next time as we spotlight another pioneer powering the continent, one community at a time. To learn more about Ignite Energy Access work, visit www.igniteaccess.com. This podcast has been made possible with support from Inensas and the World Bank's Energy Sector Management Assistance Program, ESMAP. Their commitment to advancing sustainable energy access continues to empower stories like this one, showcasing how innovation and community driven solutions are transforming lives across Africa.