Globeleq, a leading independent power producer focused on Africa, has entered into a definitive agreement to acquire a 51% equity stake in Lunsemfwa Hydro Power Company (LHPC), a Zambian renewable energy company. The stake is being sold by Agua Imara, a subsidiary of Norfund, the Norwegian investment fund for developing countries.
LHPC, headquartered in Kabwe, Central Province of Zambia, currently operates two hydroelectric power plants with a combined installed capacity of 56 megawatts (MW). In addition to its existing hydro assets, the company is actively developing a 20MW solar photovoltaic (PV) project, signaling its commitment to diversifying its renewable energy portfolio.
The remaining 49% ownership of LHPC is retained by Wanda Gorge Investments, a Zambian infrastructure investment firm.
LHPC supplies electricity under a long-term power purchase agreement (PPA) with the Zambia Electricity Supply Corporation (ZESCO), the national utility. It also serves a range of private sector clients, including Copperbelt Energy Corporation and Jubilee Metals. Furthermore, LHPC holds a license to trade electricity on the Southern African Power Pool (SAPP), positioning it as a regional energy player.
The transaction is expected to close in the second half of 2025, subject to regulatory approvals and customary closing conditions.
Jonathan Hoffman, CEO of Globeleq, expressed enthusiasm about the acquisition, stating:
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.
Øystein Øyehaug, Investment Director at Norfund, added:
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.
