Zimbabwe renewable energy sector gets $100mn support from Old Mutual

Old Mutual Zimbabwe (Old Mutual) has launched a $100mn package to fund renewable energy projects in the southern African nation, newZWire writes.

The Old Mutual Renewable Energy Fund is supported by the Zimbabwe government and some UN agencies, the publication wrote on September 24, quoting the financial and insurance giant’s CEO, Sam Matsekete.

“Our commitment to investing in renewable energy is evident in our strategic focus on solar and hydro energy projects,” he said.

“These ventures align with our mission to promote sustainable development and provide tangible solutions to Zimbabwe’s energy challenges. This fund aims to provide financial returns and social impact, benefiting investors and those involved in renewable energy projects along the value chain. Our target is $100mn, with $20mn already committed to specific projects.”

Zimbabwe’s energy grid is dominated by coal generation.  Hydropower capacity is around 1,080 megawatts (MW) while smaller hydro and solar projects contribute around 50 MW.

ZSE-listed Old Mutual expressed commitment to expand green capacity having invested $26mn in at least five projects in 2023. Among the key projects that it has backed a 5MW solar farm west of the country and a 25MW plant to the northeast.

Zimbabwe aims to produce 2,100 MW from renewable projects by 2030, Secretary for Energy and Power Development Gloria Magombo said.

“The importation of power from other countries is costly and usually results in higher tariffs, thereby affecting our economy,” she said. “With the operationalisation of this fund and additional investments in large-scale renewable energy projects, we expect to be energy self-sufficient in the near future.”