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Fungai Lupande Mashonaland Central Bureau
The Insurance and Pensions Commission (IPEC) has approved an application by Guruve Solar Park for prescribed asset status for its $4,75 million solar project, which would enable the company to raise money on the open market.
On completion, the solar project will feed additional power onto the national grid and will also light up Guruve and Mbire districts.
Prescribed asset status is an approval granted to bonds or securities (Prescribed assets) issued by the Government, local Government, quasi-Government organisations or any other bond.
IPEC Commissioner Dr Grace Muradzikwa said when approving prescribed assets the Commission looks at projects that are linked to pillars of the National Development Strategy 1 (NDS1).
She said insurance has a positive role in economic development as it drives demand and economic activities.
She added that the insurance industry promotes economic growth, fosters social cohesion, promotes investment in social investment and reduces inequality.
In agriculture financing, the Commission approved prescribed assets worth $250 million this year.
“There is a positive relationship between insurance development and economic growth. When approving prescribed assets we look at where the Government wants to take this country and the economy,” she said.
“We speak to fundamental pillars in NDS1 including infrastructure development because the insurance industry is in the centre of financing.
“The Commission also approved a prescribed status application worth $60 million to finance small to medium enterprises (SMEs). Other investments are in infrastructure for water for example dams or insurance of water related projects.”
Guruve Rural District Council chief executive officer Mr Tinos Marisa said the solar project is one of the biggest projects in Guruve by Guruve Solar Park.
The project will also benefit Mbire district in power supply.
“The investors want to initially produce 5, 5 megawatts of solar power. Their target is to produce 10 megawatts if they are given the go ahead to vary their license. The power will be fed into the national grid”.
Online Reporter