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OLD Mutual Zimbabwe on Friday launched a US$100 million Renewable Energy Fund as it moves to provide much-needed financial support for renewable energy projects across Zimbabwe.
Registered with the Securities and Exchange Commission of Zimbabwe with Old Mutual, the government of Zimbabwe and various United Nations agencies as its key initial investors, the private equity fund is dedicated to fostering renewable energy investments in the country.
The Old Mutual Renewable Energy Fund is designed to finance and develop local renewable energy projects, initiatives and technologies, aligning with Zimbabwe’s goals to meet its Sustainable Development Goals (SDGs). Specifically, the Fund targets SDG 7 — Affordable and Clean Energy, SDG 9 — Industry, Innovation and Infrastructure and SDG 11 — Sustainable Cities and Communities. The massive funding initiative aims to catalyse sustainable economic development while supporting the nation’s carbon reduction commitments.
“Our commitment to investing in renewable energy is evident in our strategic focus on solar and hydro-energy projects. These ventures align with our mission to promote sustainable development and provide tangible solutions to Zimbabwe’s energy challenges,” said Old Mutual Zimbabwe chief executive officer, Mr Sam Matsekete during the launch event in Harare.
“By harnessing the sun’s power and our abundant water resources, we are paving the way for a cleaner, more resilient energy future. The Old Mutual Renewable Energy Fund is a testament to this commitment.
“The Fund brings together partners such as Old Mutual, the Government of Zimbabwe, UN agencies and private sector investors,” he added.
“This fund aims to provide financial returns and social impact, benefitting investors and those involved in renewable energy projects along the value chain. Our target is $100 million, with $20 million already committed to specific projects.”
The initiative has been welcomed by the Government as it buttresses the national drive to boost renewable energy investments and promote climate-friendly production models.
“The National Renewable Energy Policy envisages that the country should add 2 100MW of renewable energy or 26,5 percent of RE contribution by 2030.
“More importantly, the policy clearly pronounces that a Green Fund responsible for funding renewable energy and energy efficiency projects shall be established,” said Dr Gloria Magombo, the Permanent Secretary for Energy and Power Development.
“Thus, this Fund is a key milestone in the implementation of our Renewable Energy Policy. The launch of the Fund is clearly part of the resource mobilisation that is crucial for achieving our Renewable Energy targets,” she said.
“Investment in the energy sector, especially renewable energy, will assist in powering the envisaged upper middle-income economy. The importation of power from other countries is costly and usually results in higher tariffs, affecting our economy,” said Dr Magombo.
“The higher power costs are generally felt by the ordinary citizens who have numerous other socio-economic challenges. 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.”
Marjorie Mayida, the managing director of Old Mutual Investment Group, reaffirmed the company’s commitment to promoting economic growth and sustainable renewable energy sources.
“The Old Mutual Renewable Energy Fund is not only a solid financial opportunity but also a chance to contribute to a sustainable and prosperous Zimbabwe. By investing in this fund, you align your resources with a vision that prioritises responsible growth and well-being of our community.”
The Fund aims to attract both local and international investors who are passionate about sustainability and recognise the potential of renewable energy in Zimbabwe.
The intervention is also expected to help facilitate innovation and infrastructure development that aligns with the country’s long-term economic and environmental goals through strategic investments.
Speaking at the launch, Dr Edward Kallon, United Nations Resident Co-ordinator said: “Today’s event marks the convergence of ideas, partnerships and investments aimed at addressing one of the most pressing challenges of our time — climate change and the critical role of renewable energy in achieving the SDGs.
“The Renewable Energy Fund, managed by Old Mutual, is aimed at providing much-needed financial support for renewable energy projects across Zimbabwe,” he added.
“What sets this Fund apart is its innovative blended finance model. By leveraging both public and private capital, the Renewable Energy Fund will finance projects that are both bankable and socially impactful. This model has been designed with sustainability at its core- ensuring that investments are viable while achieving key SDG targets, including energy access (SDG7), climate action (SDG13) and gender equality (SDG5).”
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