Online Reporter
Rutendo Nyeve [email protected]
THE private sector financiers have commended Government’s liberalisation of the energy sector, saying policy reforms implemented over the past years have created a conducive environment for investment.
This comes as the Government, United Nations agencies and Old Mutual Zimbabwe Limited joined forces to launch a renewable energy fund worth over US$40 million.
The fund, established through a public-private partnership, has already begun disbursing capital to women-led energy projects, signalling a new era of inclusive and sustainable power generation in the country.
Mr Samuel Matsekete, the Group Chief Executive Officer of Old Mutual Zimbabwe Limited, revealed the development in an interview with Zimpapers on the sidelines of the ongoing SADC Sustainable Energy Week in Victoria Falls.
He credited recent policy shifts for enabling private capital to flow into the renewable energy space.
“We are here at the SADC Renewable Energy Week, and we have had very, very useful interactions. I must congratulate the Government of Zimbabwe and the Minister for successfully hosting this event,” Mr Matsekete said.
“Part of the issues we have seen in the discussions related to policy. We have to appreciate that there has been significant development in terms of policies designed to support private investment into renewable energy. We have seen Government come through and support minimum tariffs, and they have also played a role to ensure that the multi-currency regime makes sense for private sector capital to invest in.”
Mr Matsekete commended the support from the Reserve Bank of Zimbabwe in prioritising foreign investors’ access to currency had further scaled up participation.
“All of this has meant we have been able to scale up investment into the renewable energy sector gradually and progressively
He revealed that Old Mutual has joined forces with partners to unveil a fund set to enhance energy access.
“This is a public-private partnership. We have Government involved, which we really value and cherish. We have UN agencies involved; they are promoters of the project. This is a development fund from the UN. They have committed so far US$10 million into the project, where we have also matched that level of investment,” he said.
To date, the fund has financed a women-led hydropower project that integrates community dividends and social impact.
“We have invested in projects delivering just under 50 megawatts to the grid, a mix of hydro and solar. With the fund, we see ourselves delivering more projects at a faster pace,” he said.
He called for continued policy support to de-risk long-term projects and strengthen transmission infrastructure to evacuate power to off-takers.
