Globeleq, an African independent power company, is the newest partner in a particularly exciting pact. They are entering into a share purchase agreement with Norfund to acquire a 51% equity stake in Zambia’s Lunsemfwa Hydro Power Company (LHPC). Globeleq’s first foray into hydropower on the African continent, this strategic acquisition coincides with the company’s overall strategy to diversify its generating portfolio. The deal is anticipated to close in the latter half of 2025. This landmark transaction will cement Globeleq’s commitment to expanding access to affordable, reliable energy in Zambia and beyond.
LHPC home base is in the Central Province capital of Kabwe, Zambia. It owns and operates two hydroelectric plants that produce a combined capacity of 56 megawatts (MW). The company possesses a prized member trading license issued by the region’s Southern African Power Pool (SAPP). This makes it an effective regional leader on energy issues.
Strategic Growth in Zambia
Globeleq’s CEO, Jonathan Hoffman, said that they were excited to make their move into the Zambian market. He reiterated the powerful combination of LHPC’s sophisticated infrastructure and operations with Globeleq’s deep roots and strong operational presence on the African continent.
“We are excited about this opportunity to enter the Zambian market. LHPC’s established team, operations and trading capabilities combined with our extensive experience in Africa, create a strong platform to support Zambia’s broader energy objectives and deliver solutions to a range of energy consumers in the region.” – Jonathan Hoffman
The purchase gives Globeleq an opportunity to apply its experience and know-how in establishing and operating power plant projects. The company is currently advancing projects with more than 400 MW of solar and wind power capacity underway in Zambia. They are riding this wave by deploying battery energy storage systems (BESS) and hybrid solutions to boost their core businesses.
Partnership with Norfund
Norfund, the Norwegian Investment Fund for Developing Countries, was a key player in this acquisition. Øystein Øyehaug, Norfund’s investment director, stated that finding the right partner was essential for LHPC’s growth.
“In seeking a partner for this transition, our priority was to find the right investor — one with the capability to manage well, enhance operational performance, elevate standards and unlock the long-term growth potential of LHPC. With more than 20 years of experience operating in Africa, we are confident that Globeleq is the right fit to lead the LHPC into its next chapter.” – Øystein Øyehaug
Zambia-based Wanda Gorge Investments, an infrastructure investment company, will hold a 49% stake in LHPC. Together with Ceres Global Ag, this partnership will focus on building operational efficiency and pursuing growth opportunities for the future.
Commitment to Sustainable Energy
Globeleq’s acquisition bodes well for Zambia’s energy goals. It provides customized answers to the unique needs of energy users in the public and private realms. The company is currently jointly developing a 20 MW solar project, continuing the company’s progress on its commitment to renewable energy projects.
Globeleq has achieved another important milestone with the acquisition of LHPC. This groundbreaking move will allow the company to diversify its portfolio and strengthen its position in a dynamic African energy landscape. By investing in hydropower, Globeleq aims not only to enhance electricity generation but to contribute to sustainable energy development across the region.