- $100 Million Fund: Old Mutual Zimbabwe introduces a private equity fund targeting renewable energy investments to address the country’s energy crisis
- Emissions Reduction Goal: The initiative supports commitment to reduce greenhouse gas emissions
- Focus on Sustainable Resources: The fund will prioritize solar and hydro projects, leveraging Zimbabwe's abundant renewable energy potential
Harare- As Zimbabwe grapples with an ongoing energy crisis, Old Mutual Zimbabwe has announced the launch of a US$100 million private equity fund aimed at renewable energy investments.
With the country striving to meet its climate commitments under the 2015 Paris Agreement, this initiative aligns with Zimbabwe's enhanced goal of reducing greenhouse gas emissions by 40% by 2030, compared to business-as-usual levels.
This will be fundamental in addressing the pressing energy demands and contribute to a significant reduction in emissions.
The Fund, supported by UN agencies and the government, is designed to meet Zimbabwe's increasing demand for green energy solutions.
CEO Sam Matsekete emphasized the dual focus of the initiative: "This fund aims to provide financial returns and social impact, benefiting investors and those involved in renewable energy projects along the value chain.
“With US$20 million already committed to specific projects, the fund is set to drive sustainable development while addressing the energy challenges faced by the nation.”
Old Mutual’s commitment to renewable energy is reflected in its strategic focus, having previously invested US$26 million in alternative energy sources in 2022, including solar initiatives like Solgas Energy's 5MW solar farm and the 25MW Centragrid plant.
The fund, registered with the Securities and Exchange Commission, aims to attract both local and international investors, with Managing Director Marjorie Mayida highlighting its potential to foster a sustainable and prosperous Zimbabwe.
Currently, Zimbabwe's energy sector is struggling due to low water levels at the Kariba Dam, outdated infrastructure at the Hwange Thermal Power Station, and insufficient investments in solar energy.
The country is producing less than 1,300 megawatts on average, falling short of the peak demand of up to 2,000 megawatts.
The National Renewable Energy Policy aims to add 2,100 MW of renewable energy by 2030, focusing primarily on solar and hydro projects.
With abundant solar radiation averaging 20 MJ/m², Zimbabwe is ideally positioned for solar energy generation.
Additionally, resources such as bagasse, uranium, and wind energy present further opportunities for diversifying the energy portfolio.
By harnessing these resources, the Old Mutual Renewable Energy Fund not only addresses immediate energy needs but also plays a crucial role in reducing emissions, aligning with Zimbabwe's environmental goals.
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