COMMENT: Government must continue to improve the investment climate

WE want to say thumbs up to Independent Power Producers (IPPs) for complementing Government efforts to increase power generation to meet the country’s demand for electricity. Zimbabwe is generating an average of 1 400MW per day against a national demand of 1600MW and some of the power is coming from IPPs.

The country targets to add 2 000MW to the national grid from solar, wind and other sources by 2030. What is encouraging is that a number of solar projects are at various stages of implementation, a positive indication that the set target will be realised.

Blanket Mine in Gwanda last year commissioned a 12MW plant while Bulawayo-based Pretoria Portland Cement (PPC) is in the process of constructing a 10MW in the city and another 20MW at Colleen Bawn.
Another giant solar plant with a capacity of adding 100MW to the national grid is also under construction in Victoria Falls.

The project which is being implemented in four phases, is located a few kilometres from the Victoria Falls International Airport.

Southern Energy which is implementing the project has availed US$31 million for the first phase. A United Kingdom renewable energy company, Naanovo Energy Inc indicated in 2021 that it had plans to invest in solar energy in Bulawayo.

The company announced then that it intended to construct three solar plants in the city and it is our hope that the company is still interested in implementing the project.

The UK company said its projects will be implemented under the build, operate and transfer arrangement (BOT). Under this arrangement, the company will run the plants for 25 years selling the power to the Government and at the end of 25 years it will hand over the plants to the people of Zimbabwe.

We want at this juncture to implore the companies that have been given the green light to construct solar plants to speed up the implementation of the projects to boost power generation. Zimbabwe which has sunshine throughout the year, has potential to produce enough electricity, not just for its consumption but even excess to export to neighbouring countries.

The country has during the past few months witnessed reduced load shedding which is a positive development as it enables industries to increase production. The implementation of renewable energy projects across the country is a confirmation of investors’ confidence in the policies of the Second Republic.

The challenge therefore is for Government to continue improving the investment climate so that we continue attracting both local and foreign investors. Zimbabwe’s ability to attract investors had in the past been frustrated by high cost of labour, erratic electricity supplies and poor transport infrastructure.

Some investors were also frustrated by the long wait for projects approval. Government should therefore be commended for addressing most of these shortcomings thereby making Zimbabwe an investment destination of choice.

 

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