Camco's REPP 2 completes first investment in landmark Zambia solar project

REPP 2, managed by Camco, has successfully completed its first deal close, making a debt investment in Kwama Energy to support the development of Ilute, a pioneering utility-scale solar project in Zambia.

The Ilute project is a 25MW (32MWp) solar power plant and the first utility-scale project in Sub-Saharan Africa to sell electricity under a market-based Power Purchase Agreement (PPA) with Africa GreenCo. By moving beyond the traditional reliance on state utility offtake agreements and sovereign guarantees, the project represents an important milestone in the evolution of Africa's renewable energy market.

The project will also contribute to Zambia's efforts to diversify its electricity generation mix and reduce its dependence on hydropower.

Following equity investments by Kwama Energy and Serengeti Energy Africa, approximately USD 26m of project-level financing is being provided by a consortium of senior lenders including FMO, the Sustainable Energy Fund for Africa (SEFA) and ElectriFI.

Camco was supported on the transaction by the infrastructure team at Burges Salmon LLP.

As the first investment to reach financial close under REPP 2, the transaction marks an important milestone for the fund and demonstrates its commitment to financing innovative renewable energy projects that mobilise private capital, expand access to clean electricity and accelerate the energy transition across Africa.