FINANCIAL services giant Old Mutual Limited has reported significant progress on its US$100 million Renewable Energy Infrastructure Fund, launched in 2024 to drive clean energy investments in Zimbabwe.
The blended finance vehicle, backed by the government, United Nation agencies, and private investors, has already secured US$17 million in commitments, with initial deployments now underway.
The fund aims to de-risk large scale renewable energy projects and accelerate Zimbabwe’s transition to sustainable power.
“We have made tangible progress on our US$100 million Renewable Energy Infrastructure Fund, launched in 2024 to accelerate investment in clean energy and economic development projects,” Old Mutual said in emailed responses to businessdigest.
“The Fund, which continues to grow, is structured as a blended finance vehicle, bringing together capital from a diverse range of partners, including United Nations agencies, the Government of Zimbabwe, and private sector investors.
“The fund has so far received commitments amounting to US$17 million which is earmarked for investments in renewable energy projects. Deployments by the Fund into selected maiden investments is currently underway.”
Old Mutual said this collaborative model was designed to “de-risk investment and unlock further funding” for large scale energy infrastructure.
“We are playing a central role in mobilising and directing resources into projects that support Zimbabwe’s transition to sustainable energy,” it said.
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The firm highlighted that green energy investments were part of a bigger picture where “we are focusing on responsible investments” with a focus on sustainable risk adjusted returns.
The company has five operating power plants with a generating capacity of 37,83 megawatts (MW) from hydro and solar energy sources, with additional projects with capacity to generate 28,77 MW under construction nationwide.
Meanwhile, Old Mutual said has been engaging government and relevant regulatory authorities over its suspension from the Zimbabwe Stock Exchange.
Also listed on the Johannesburg Securities Exchange (JSE), Old Mutual was suspended from the ZSE alongside seed producer Seed Co International and cement maker PPC in 2020.
“Whilst engagements are ongoing, as a stop-gap measure for valuation purposes the share is being valued in line with the price on the JSE,” the company said.
“We are acutely aware of the inconvenience that this suspension poses on the holders of the shares as they cannot trade them to generate liquidity and as such all efforts are being exerted on the engagement process.”
It said the extension of suspension had not disrupted operations, and the group continues to extend normal services to customers.
“In the interim, we continue to focus on preserving and enhancing shareholder value through the strength and performance of our core business operations across the region. Old Mutual remains well-capitalised and committed to delivering long-term value,” the firm said.
The ZSE recently warned that the prolonged suspension of Old Mutual and PPC was damaging key market indicators, citing their historic contributions to liquidity, index performance, and turnover.
“Old Mutual has consistently recorded an average liquidity ratio of at least 4% per year and has been a heavyweight constituent of both the ZSE All-Share Index and the ZSE Top Ten Index. Additionally, it has served as a headline counter in the ZSE Financial Index,” the bourse said.
“In terms of turnover contribution, Old Mutual and PPC have remained among the top ten counters on a year-to-year basis. Their absence from the market has adversely affected these key metrics,” it noted.
The bourse said it continues to lobby the government for assistance in reinstating the counters.
The suspension, which has triggered valuation challenges for investors, resulted from government’s suspicion that fungible counters were exacerbating the depreciation of the domestic currency at the time.
Fungible counters trade on more than one bourse.
