Zambia’s Chitanda Sugar Company Limited has launched an ambitious US$1.3 billion capital investment programme aimed at transforming its operations and positioning the company among Africa’s leading sugar producers. The company has appointed Hong Kong-based investment firm Treadway as lead arranger for the financing.
The programme comprises US$800 million in debt financing for the construction of an 800-megawatt solar power plant, alongside US$500 million in equity earmarked for the development of a new sugar refinery.
The solar power project forms a central pillar of Chitanda Sugar’s diversification strategy. In addition to supplying energy for the refinery’s operations, the facility will sell excess power to Zambia’s national grid. The company has already signed a memorandum of understanding with the Government of Zambia, through state utility ZESCO, for the off-take of 600 megawatts, with a final power purchase agreement expected within the next two months.
Treadway has partnered with Dalian CDS Solar Technology Co, a top-ten Chinese engineering, procurement and construction (EPC) contractor, to deliver the project. Funding has been secured from a European bank with an established track record in financing large-scale solar projects across Africa.
In support of local capacity development, two African solar contractors will participate in the project under the management of Agilitee, the sole local partner for Treadway and Dalian CDS Solar in Africa and Southeast Asia.
Beyond the energy investment, Treadway will also support Chitanda Sugar’s planned listing on the Johannesburg Stock Exchange (JSE) main board, with the appointment of a JSE-approved sponsor currently being finalised. Discussions on the US$500 million equity component are at an advanced stage with two United States-based investment funds.
Commenting on the partnership, Kirana Chin, Managing Director for Government Affairs at Treadway, said the firm was pleased to support Chitanda Sugar’s growth ambitions.
“We are thrilled to be working with Chitanda and its leadership to help build the company into one of Africa’s leading sugar producers. We are equally encouraged by their diversification strategy, which combines renewable energy generation with cost efficiencies for sugar production while supplying electricity to the Government of Zambia,” said Chin.
The Chairman and Chief Executive Officer of Chitanda Sugar Company, Peter Mulenga Akupela, a local investor certified by the Zambia Development Agency (ZDA), described the partnership as a major milestone.
“It has taken us years to identify a credible partner willing to invest in these two transformative projects,” said Akupela.
“Senior Chief Chitanda Lubamba of the Lenje people, together with his community, has waited patiently for these developments to come to fruition,” added the Chairman.
He confirmed that final agreements are expected to be concluded next week, clearing the way for a groundbreaking ceremony.
“The ceremony will be officiated by His Excellency Hakainde Hichilema, President of the Republic of Zambia, as agreed with Director General of the Zambia Development Agency, Albert Halwampa,” affirmed Akupela.
The projects are expected to deliver significant socio-economic benefits, including the establishment of a 3,000-hectare out-grower scheme for smallholder farmers, to be overseen by Senior Chief Chitanda Lubamba.
The Zambia–DRC sugar market continues to record strong and growing demand, particularly in the Democratic Republic of Congo, with Zambia emerging as a key regional supplier through its surplus production capacity.
Treadway Africa says its syndicated funding structure is designed to address production, manufacturing and import challenges, while supporting Zambia’s broader industrial transformation.
“We believe in Chitanda Sugar Limited and are excited to be part of Zambia’s transformation. The Zambian Government’s goal of achieving universal electricity access by 2030, alongside efforts to diversify the energy mix, aligns with our vision of powering every African home by 2035.
“Zambia is central to this ambition as a regional hub for green energy and manufacturing, starting with Chitanda Sugar Limited’s grand master plan that integrates agriculture and renewable power,” said Vice President for Africa at Treadway, Fred Muteti.
Reflecting on the broader significance of the investment, Akupela concluded on the impact of the projects on the continent.
He said: “Africa is rising. We are grateful to our partner, Treadway Africa, for sharing this vision.”
By Mirriam Kaliza
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