Online Reporter
Oliver Kazunga
Senior Reporter
Zimbabwe has unveiled a new infrastructure financing model anchored on Government guarantees, aimed at unlocking long-term private capital and positioning the country as a competitive destination for renewable energy investment.
President Mnangagwa says the framework marks a major shift in how strategic national projects are funded, creating a secure and bankable environment for investors.
Speaking recently during the commissioning of the New Glovers 10-megawatt solar power plant in Munyati, Kwekwe, the President described the project as a milestone under the Government Project Support Agreement Framework.
“This project is historic, being among the first implemented under the Government Project Support Agreement Framework,” he said.
“This is a mechanism which creates a conducive and bankable investment environment for renewable energy development and infrastructure financing.”
The New Glovers Solar project — a partnership involving the Public Service Pension Fund (PSPF), which holds a 51 percent stake, and other local investors — is expected to generate 110MW once fully completed, with the first phase already feeding 10MW into the national grid.
The framework is expected to accelerate Independent Power Projects (IPPs), particularly in the renewable energy sector, as Zimbabwe moves to meet rising electricity demand driven by industrial expansion, mining growth and urbanisation.
Under the model, investors are assured of cost-reflective tariffs, guaranteed off-take of generated power and the ability to repatriate dividends offshore – key conditions that improve project bankability and attract international financing.
The commissioning comes as Government intensifies efforts to increase private sector participation in power generation following years of electricity shortages that have constrained industrial productivity and economic growth.
President Mnangagwa said the new approach is designed to position Zimbabwe as an attractive destination for long-term infrastructure investment.
“Such interventions are designed to position Zimbabwe as a competitive and attractive destination for long-term infrastructure investment,” he said.
He also challenged investors, industries and communities to scale up adoption of renewable energy solutions, describing solar power as a critical driver of economic transformation.
“Our country is endowed with abundant solar radiation. The sun is our silent partner,” he said.
“Reliable, affordable and clean energy has ripple effects on overall economic productivity, investment attraction, job creation and improved quality of life for our people.”
The President commended pension funds and local financial institutions for their role in financing the project, signalling Government’s intention to mobilise domestic capital markets to support strategic infrastructure.
“More must be done by local capital markets towards mobilisation of resources for strategic national projects that directly impact Vision 2030 and the industrialisation as well as modernisation of our motherland, Zimbabwe,” he said.
Developed by indigenous independent power producer New Glovers Solar, the plant is part of Government’s 100-day cycle priority projects and aligns with broader efforts to diversify the country’s energy mix, reduce reliance on imported electricity and improve supply reliability for key economic sectors.
