In a major milestone for Africa’s off-grid energy sector, Canadian solar company Solar Panda has acquired Zambia’s VITALITE Zambia Limited, the country’s first provider of pay-as-you-go (PAYGO) solar home systems. The deal marks Solar Panda’s entry into Southern Africa and reflects growing consolidation across the continent’s clean energy space.

Founded in 2013, VITALITE pioneered Zambia’s PAYGO solar market and has since grown to serve over 100,000 customers. The company offers solar home systems, clean cookstoves, and productive-use appliances in a market where nearly 60% of the population lacks access to electricity. The company’s Malawi-based affiliate, VITALITE Group Limited, is not part of the transaction and will remain independent.

The acquisition gives Solar Panda a critical foothold in Zambia, adding to its operational base in Kenya and a recently announced expansion into Senegal. It marks the firm’s third active African market, as it pushes toward an ambitious target of serving millions of households across the continent by 2030.

“This acquisition represents a strategic leap forward,” said Andy Keith, founder and CEO of Solar Panda. “VITALITE brings a strong brand, an experienced local team, and a deep understanding of the Zambian market. Together, we will accelerate the delivery of clean, affordable energy to households across the country.”

While financial terms of the deal were not disclosed, Solar Panda confirmed that the move strengthens its vertically integrated supply chain, allowing it to scale operations more efficiently in the region. The company is currently raising its Series B equity round to support its broader international expansion.

For VITALITE, the deal offers much-needed capital and operational support to meet rising energy demand in a challenging macroeconomic environment.

“Partnering with Solar Panda provides the capital, infrastructure, products and strategic support we need to reach scale faster and deepen our impact,” said Dr. John Fay, Board Chair at VITALITE Zambia.

The acquisition reflects a broader trend in Africa’s distributed energy sector, where early movers are now becoming targets for consolidation as newer entrants seek to de-risk market entry and achieve scale. While large international players like ENGIE and Shell have exited the off-grid solar space in recent years, smaller but agile companies such as Solar Panda are betting on regional expansion backed by leaner models and vertically integrated operations.

For Zambia, the deal could reinvigorate momentum in rural electrification, where government initiatives have struggled to bridge the gap in last-mile delivery. PAYGO systems, which allow customers to pay for solar energy in installments using mobile money, have emerged as a vital solution in markets with low-income and low-grid-penetration.

Both companies emphasised continuity in leadership and operations during the integration phase, with no major disruptions expected for existing VITALITE customers or staff.