India Enters African Solar Financing With $22.5m Loan for Zambia

India has completed its first renewable energy financing deal in Africa, approving a $22.5 million loan for a 100-megawatt solar photovoltaic project in Zambia.

The financing, approved by the Indian Renewable Energy Development Agency (IREDA), will support a solar project in Zambia’s Serenje district.

In a statement, IREDA said the loan will be provided to Swarna Solar Limited, a renewable energy developer. The agency did not disclose the total project cost or the full financing structure.

The deal is IREDA’s first renewable energy financing outside India and underscores the country’s efforts to expand its presence in global clean energy markets.

Through its international subsidiary, IREDA Global Green Energy Finance IFSC Ltd (IGGEFIL), based in Gujarat International Finance Tec-City (GIFT City), the agency aims to mobilise international capital to support renewable energy projects abroad.

The financing comes as Zambia seeks to diversify its electricity mix amid growing climate risks. The country relies heavily on hydropower for electricity generation, making it vulnerable to prolonged droughts that have disrupted power supply in recent years.

Expanding solar capacity is seen as a key strategy to improve energy security and reduce exposure to climate-related shocks.

IREDA’s entry into Africa positions India as a new player in the continent’s clean energy financing landscape, although it faces competition from China, which remains a dominant lender and supplier of solar equipment across Africa.