Mercuria and Exergy Energy Sign $250 Million Deal for African Power Projects
Mercuria and Exergy Energy have finalized a $250 million financing deal to accelerate power generation and transmission projects across Southern and Eastern Africa.
Global energy and commodities group Mercuria has entered into a $250 million financing agreement with Exergy, an Africa-focused integrated energy investor. The deal, signed in Lusaka, Zambia, represents a significant private capital commitment to Zambia's power sector and marks Mercuria's entry into the region's power market.
The funds will finance generation and transmission projects undertaken by Exergy subsidiaries Lunzua Power Company and Lusitu Transmission and Distribution Company, with several projects already in progress. Exergy aims to contribute to Zambia's goal of reaching 10,000 MW of power supply by 2031, aligning with broader regional initiatives to connect 300 million Africans to electricity by 2030.
Mercuria brings more than capital to the partnership, offering global market insight and expertise in energy trading risk management. As one of the world's largest energy traders, Mercuria provides a deep understanding of energy and commodity markets, which Exergy values alongside the financial investment. Mercuria cited Zambia's stability and regional position as key factors in its decision to commit long-term capital.
Both companies credited Zambia's power sector reforms for enabling the agreement. Mercuria will also provide market knowledge and support for Exergy's project execution. The deal is expected to enhance regional power trade, leveraging Zambia's strategic location as a hub within Southern and East African power pools.