Online Reporter
Sukulwenkosi Dube-Matutu, [email protected]
INVESTING in renewable energy in Zimbabwe is a lucrative venture and Caledonia Mining Corporation has proved it by scooping nearly US$8,3 million profit from its 12,2MW Blanket Mine solar plant in Gwanda, built at a cost of about US$14 million and has been sold for a staggering US$22,35 million.
The flagship solar plant project was completed in record time in November 2022 and President Mnangagwa officially commissioned it in February 2023, signalling Zimbabwe’s commitment to embracing clean energy and widening its energy mix to meet economic needs.
Since then, Caledonia has been enjoying reduced energy costs with a positive impact on the national grid, affirming the country’s drive to achieve energy efficiency.
To accelerate such gains, the Government has responded by awarding more incentives for renewable energy projects by making it easy to procure capital equipment and solar products to promote the adoption of solar energy and de-risking private sector investments.
Yesterday, Caledonia Mining Corporation officially handed over the power plant to its new owner, Cross Boundary Energy (CBE), following the completion of the $22,35 million sale by the two parties on April 11.
The move strengthens Caledonia’s cash position and allows the company to redirect capital toward its core gold mining operations and strategic expansion in Zimbabwe.
In his remarks during the handover event, Minister of Energy and Power Development, July Moyo, urged more private players to follow Caledonia’s example and help Zimbabwe’s transition towards clean, secure and sustainable energy through investing in the energy sector.
He said the country requires US$9 billion in investments to achieve 100 percent household energy by 2030, a feat that cannot be achieved by the Government alone.
Moyo further commended Caledonia for responding to the call for private sector participation in renewable energy development, saying the strategic investment underscores a strong vote of confidence in the nation’s renewable energy potential.
“We are providing incentives such as duty exemptions for all energy capital equipment and solar products to further encourage private sector participation.
“This commitment not only reflects our ambition to achieve 100 percent household electricity access by 2030 but also to enhance access to clean cooking solutions and increase the share of non-hydro renewable energy in our power mix,” said Minister Moyo.
“The Government firmly acknowledges that access to modern energy services is a critical catalyst for industrialisation, enhanced health and education, gender empowerment and holistic human development.”
He said the Government’s energy strategy of mobilising private sector investment in the energy sector has seen the implementation of policies and effective de-risking mechanisms and ensuring regulatory certainty.
This had seen the recent signing of the Government Project Support Agreement (GPSA) with InfraCo Africa for the establishment of a 30MW solar power plant in Vungu, Zimbabwe. The agreement was signed on the sidelines of the recent Africa Energy Forum in Cape Town, South Africa.
Minister Moyo said the deal exemplifies a commitment to fostering regional cooperation and investment, marking a significant step toward de-risking private sector investments in Zimbabwe.
“Today, we celebrate not just the completion of a project, but the realisation of our shared vision, especially as we work diligently toward the objectives outlined in our National Development Strategy and Vision 2030,” he said.
Such initiatives not only promise to elevate the energy landscape but also position Zimbabwe as a leader in sustainable mining practices, paving the way for a brighter, more sustainable future for all, he added.
Since its commissioning in February 2023, the solar plant has generated over 33,000 MW of electricity, meeting roughly 20 percent of Blanket Mine’s daily energy needs while significantly reducing reliance on diesel and grid power.
Although Caledonia has sold the plant to Cross Boundary Energy (CBE), it continues to supply power to Blanket Mine under a power purchase agreement. Caledonia Mining Corporation director, Mr Victor Gapare, said the company remains focused on growing its gold production while staying true to environmental and social commitments.
The sale of the 12.2MW solar plant is part of Caledonia’s broader strategy to streamline operations and concentrate on high-value gold production assets. The company has already invested close to US$41.8 million in 2025 in the expansion of its mining operations in Zimbabwe.
“The commissioning of this plant in February 2023 marked a critical step in reducing our carbon footprint and improving our energy security,” said Mr Gapare.
“Since then, the plant has produced over 33,000MWh of clean energy-powering approximately 20 percent of our daily operations,” he said.
“This success was made possible through strategic collaboration. Cross Boundary Energy has been an outstanding partner and today’s handover signals not an ending, but a continuation of shared efforts toward responsible and sustainable mining. “Beyond our operational achievements, we remain deeply committed to uplifting the communities that support our work.”
Cross Boundary Energy’s chief regulatory officer, Ms Tessa Lee, said their company exists to decarbonise industry by providing clean, affordable and reliable power directly to African businesses.
She said they are now one of the largest providers of energy to mines and industrial players in Africa, with a combined portfolio of over 600MW.
“Incorporating this solar facility into our growing portfolio to supply Blanket Mine with affordable power perfectly aligns with our mission, and marks the start of a long partnership,” she said.
“This form of power production offers a decentralised, scalable and cost-effective solution to addressing energy supply challenges.”
Ms Lee said Cross Boundary Energy is working closely with Caledonia Mining Corporation and Blanket Mine to explore further expansions to the renewable energy provision on this site, under a phased approach.
In a speech read on his behalf by director economic development, Mr Richmond Ncube, the Minister of State for Matabeleland South Provincial Affairs and Devolution, Cde Albert Nguluvhe, commended Caledonia Mining Corporation and Cross Boundary Energy for their visionary investment in green energy and for choosing to plant the seeds of sustainability in Matabeleland South.
He said this initiative goes beyond powering a mine as it powers local development, job creation and economic resilience in the province.
@DubeMatutu
