ZIMBABWE: A special fund will mobilize $45 million for renewable energy in 2022

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ZIMBABWE: A special fund will mobilize $45 million for renewable energy in 2022 ©Sebastian Noethlichs

In Zimbabwe, the authorities, with the support of the United Nations Fund for SDGs, have set up a Renewable Energy Fund (REF). This scheme will attract investment in hydropower, solar and biomass.

Zimbabwe, which has been hit by drought in recent years, has committed itself since COP 26 to reducing its greenhouse gas emissions by 40% by 2030. To achieve this, the government’s strategy is to finance local renewable energy initiatives.
In this context, the government, with the support of the United Nations Fund for Sustainable Development Goals (SDGs), which has mobilized 10 million dollars at this stage, is launching a special fund of 45 million dollars that will be fed by several development partners. These include the Infrastructure Development Bank of Zimbabwe (IDBZ); Old Mutual, the subsidiary of South Africa’s Old Mutual Investment Group (OMIG); and others such as Zimnat Asset Management, the subsidiary of Zimnat Life Assurance Company.

Boosting Zimbabwe’s installed capacity

According to the United Nations (UN), “the program aims to mobilize private investment to support renewable energy projects to achieve the Sustainable Development Goals (SDGs). In this sense, access to sustainable energy, which is part of the 7th MDG, will promote economic development, electrification, climate action, empowerment of women and youth, etc. in this East African country.
The implementation of this renewable energy financing project will start in April 2022. This initiative will also increase the country’s installed capacity at a time when the state-owned Zimbabwe Electricity Supply Authority (ZESA) is only distributing 1,600 MW of electricity out of an estimated 2,000 MW of demand.

Read also-ZIMBABWE: Zimplats Mining Company to Invest $201 Million for 185 MW of Solar Power

Faced with this situation, private initiatives are multiplying to diversify the energy mix in this East African country.
Old Mutual Zimbabwe Financial Corporation is involved in solar energy projects in Zimbabwe. In addition to installing solar systems for its offices, the investor helped install the 5 MWp Cross Mabale solar power plant, the first plant connected to Zimbabwe’s national power grid.
                                                                                                   Benoit-Ivan Wansi

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