Zambia and the European Union (EU) on Thursday signed a 33 million euros grant aimed at enhancing access to renewable energy in the southern African nation.

The grant was under the Increased Access to Electricity and Renewable Energy Production Project which targets to electrify about 4 million people in rural areas.

Minister of Energy Mathew Nkhuwa said after the signing ceremony that the grant was a sign of private sector confidence in government's development agenda and that the project caters to the rural population as part of poverty reduction efforts.

According to him, the government targets to have 91 percent in urban areas and 51 percent in rural areas by the year 2031.

EU Ambassador to Zambia Jacek Jankowski said massive investments in renewable energy was key to achieving the target of bringing electricity to rural areas.

The EU envoy said the organization was convinced that rural electrification was vital for Zambia's social and economic development.