ZIMBABWE is eyeing a US$1 billion renewable energy pipeline by 2030, driven by a fund which supports investments in clean energy, Energy and Power Development minister July Moyo has said.
The country is getting the bulk of its energy through thermal power stations after climate change has resulted in low water levels at Kariba Dam.
With an installed capacity of 1 050 megawatts (MW), the country’s major hydro plant contributed 424MW out of the 1 579MW generated yesterday.
Speaking in a session, Unlocking Africa’s Potential: Scaling Innovative Financing for SDG Transitions, Moyo said the Renewable Energy Fund, a joint project involving the government, the United Nations family and Old Mutual, was able to de-risk and attract private capital to renewable energy.
The session was held during the 9th Tokyo International Conference on African Development (TICAD 9), which ends today in Yokohama, Japan.
“Institutionalised governance, scalable project templates and blended risk mitigation are pathways to the US$1 billion clean energy pipeline by 2030,” Moyo said.
This, he said, would drive SDGs 7, 8, 9, 13 and 17.
SDG 7 covers affordable and clean energy, SDG 8 (decent work and economic growth), SDG 9 (industry, innovation and infrastructure), SDG 13 (climate action) and SDG 17 (partnership for the goals).
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Moyo was responding to how financing mechanisms drive systemic change for sustainable development and on examples of successfully leveraged catalytic investments that demonstrate scalable solutions to accelerate Sustainable Development Goals (SDG) transitions.
He said the Renewable Energy Fund Zimbabwe was able to de-risk and attract private capital to renewable energy.
The renewable energy fund is worth US$25 million.
“Our target was US$100 million and at present we are at US$25 million, sponsored by the government,” Moyo said.
“Our Infrastructure Development Bank (of Zimbabwe) has been nominated by the Ministry of Finance to put US$1 million.
“The other money is coming from the UN and Old Mutual.”
The fund is managed by Old Mutual.
He said the government lowered tariffs for ferrochrome producers, giving them two years to set up solar power plants in an ambitious drive towards clean energy.
According to the United Nations Capital Development Fund (UNCDF), the renewable energy fund was created to address one of the toughest frontiers in development finance.
The fund creates conditions for investment by accepting operational complexity, aggregating small transactions and validating unproven models, UNCDF said.
“By combining concessional capital with enterprise incubation, REF Zimbabwe catalyses early-stage ventures that are often overlooked by traditional investors due to their size, risk profile or lack of track record.”
Meanwhile, President Emmerson Mnangagwa has called on African nations to embrace new technologies to fast-track infrastructural development and improve service delivery.
He said Zimbabwe was investing in regional digital infrastructural projects aimed at narrowing the development gap between rural and urban communities.
“Zimbabwe is actively pursuing regional digital infrastructure projects to bridge the digital divide, especially in rural areas,” Mnangagwa said while addressing delegates at the 9th TICAD conference.
“Africa’s citizens and economies must be enabled to fully participate in the digital age.
“New technologies must impact our agriculture, mining, blue economies, infrastructure development and social service delivery.”
The President highlighted the significance of strategic partnerships between African countries and Japanese companies.
“The enduring partnership between Japan and Africa must see us co-create the future we want, hand-in-hand and side-by-side, towards a higher quality of life for our peoples,” he said.
“No one and no country must be left behind.”
