The purpose of this research is to examine how rural areas in developing countries can strategically transit towards sustainable electricity generation and how this transition can help promote strategic progress towards sustainable rural communities. Luangwa district in Zambia is studied as a special case but an approach that is generic for rural areas in developing countries is strived for. Based on a literature review of existing and potentially sustainable technologies for electricity generation, other case studies, and a survey of local conditions, this study proposes Small Scale Hydro and Solar as appropriate for Luangwa district. A strategic implementation plan is suggested. Some barriers to the transition and possible ways of overcoming them are pointed out, e.g., through technical and public policy measures. Potential economic, socio-political and environmental benefits of this transition are highlighted. The study concludes that with a well structured vision of a sustainable rural electrification, it is possible to strategically implement existing technologies based on renewable energy sources. However, the type of technologies that are suitable for different areas will differ considerably due to different local conditions, such as geography and climate.