Africa's Energy Awakening

Esther Nachula, Mulungushi Conference Centre, Lusaka, 10 September 2025 — The Mulungushi Conference Center in Lusaka buzzed with unprecedented energy as Southern Africa's most influential leaders gathered for the Energy Forum For Africa (EFFA) 2025 summit. It was a showcase of Zambia's journey from energy importer to regional powerhouse, with President Hakainde Hichilema leading a revolutionary shift that promised to reshape energy across the continent.

The stellar lineup of attendees spoke volumes about the gravity of the moment. Alongside President Hichilema, energy ministers from South Africa, Botswana, and Mozambique graced the occasion, their presence symbolising the interconnected future of Southern Africa's energy systems. The diplomatic corps and provincial leadership rounded out a gathering that represented the region's collective commitment to solving its energy challenges.

Alpha Mwale, CEO of Lunsemfwa Hydro Power Company Ltd (LHPC) and spokesperson for the organisers, delivered a compelling address that highlighted the magnitude of Zambia's energy sector transformation. His words painted a picture of a country that has decisively broken free from decades of restrictive energy policies, spearheading market liberalisation and regional coordination.

The Death of the Single Buyer Model

At the heart of Zambia's energy revolution lies the dismantling of the single buyer model, a monopolistic system that had long stifled competition and innovation. Mwale's announcement that this model is now "completely dead" represents a seismic shift in how electricity is traded in the country. No longer bound by restrictive purchasing arrangements, generators can now choose where to sell their electricity, while buyers enjoy unprecedented freedom in selecting their suppliers.

Change has been anchored by two critical policy innovations: open access and net metering. These mechanisms have democratised the energy market, allowing any generator or consumer in Zambia to transact directly with complete access to the national grid. The implications are profound, small-scale renewable energy producers can now compete alongside major utilities, while consumers can optimize their energy costs through market competition.

The deregulation extends beyond domestic boundaries, positioning Zambia as a regional energy hub where cross-border electricity trading becomes profitable. This market expansion transfigures investment, offering developers and financiers a customer base that spans multiple countries and currencies.

Regional Integration Drives Bankability

The presence of energy ministers from neighbouring countries at EFFA 2025 represented the physical manifestation of Southern Africa's energy interconnectedness. President Hichilema's emphasis on viewing the market as the entire region, fundamentally alters the economics of energy projects.

Such regional perspectives address bankability, one of the most persistent challenges in African energy development. Traditionally, projects relied heavily on Power Purchase Agreements (PPAs) with single buyers to secure financing. However, Zambia's new market-driven approach means that the market itself provides the bankability required for projects. With multiple buyers across several countries, developers can branch out their risk and attract investment based on market fundamentals rather than government guarantees.

"In an interconnected system, there can be no shortage of viable offers" stated Mwale. The interconnected system creates a virtuous cycle of viable opportunities. The abundance of opportunities, backed by regional market demand, shifts the investment ambience from one of scarcity to one of competition and choice.

A Call to Action for Continental Leadership

Perhaps the most compelling aspect of Mwale's address was his direct challenge to the assembled stakeholders. With all the key players present—financiers, developers, system operators, regulators, and consumers—he posed a fundamental question, "Where is the issue?" The implication was clear, all the necessary components for solving the region's energy deficit were represented in that room.

This gathering represented a convergence of capability and opportunity. The government has provided the policy framework, removing regulatory barriers and creating an enabling environment. The private sector now bears the responsibility of executing President Hichilema's vision of energy abundance and regional integration.

The challenge extends beyond Zambia's borders, encompassing the entire Southern African energy cluster. With the policy foundations laid and the market mechanisms in place, the path forward requires coordinated action from all stakeholders to alter potential into reality.

Looking Forward

As the first day of EFFA 2025 wrapped up, the message was unmistakable, Zambia has positioned itself at the forefront of Africa's energy change. The country's bold move toward market liberalisation, coupled with its commitment to regional integration, creates a template that other African nations might follow.

For international delegates and investors, the summit offered a glimpse into a market that combines political stability, progressive policies, and vast untapped potential. The invitation to explore Lusaka and experience Zambian hospitality extended beyond courtesy, becoming an invitation to be part of Africa's energy future.

The convergence of political will, policy innovation, and market opportunity at EFFA 2025 suggests that Zambia's energy revolution is potentially catalysing a continent-wide shift toward sustainable, market-driven energy development. As the delegates departed, they carried with them the energy blueprint that could reshape Africa's economic future for generations to come.