AfDB team scouts for Zim opportunities
RYAN CHIGOCHE
A team from the African Development Bank (AfDB) ended its fact-finding mission Friday which Treasury described as “historic”, signalling the bank’s intention to support Zimbabwe.
The visit by two of the bank’s vice presidents came barely two months after AfDB president Akinwumi Adesina’s trip to Zimbabwe to help the country come up with a clear roadmap to extinguish the US$13.5m external debt to international financial institutions.
AfDB vice president Private Sector, Infrastructure and Industrialisation Solomon Quaynor said his primary interest was to see what the bank can do in the private sector development.
“My key area is to really do a fact finding on what we can do as an institution to support private sector development in Zimbabwe and we spent time already meeting with several private sector entities we have had a chance to meet with the government to really understand the enabling environment that government is creating. We are quite excited to really continue to deepen our work here in terms of private sector development and in terms of infrastructure investment which is important in catalying private sector investments,” Quaynor said.
Kevin Kariuki, AfDB vice president for Power, Energy, Climate and Green Growth, said his main purpose of the visit was to buttress the institution’s support to Zimbabwe’s power sector development, specifically with regards to the US$4bn Batoka gorge hydro power project.
He said the bank wanted to Zimbabwe’s transition into green energy.
“…I am also in support the country in energy transition as Zimbabwe embarks on low carbon development trajectory and to offer support in as far climate smart agriculture is concerned as a means of the country adapting to climate change which is here to stay and of course we would also be very happy to support Zimbabwe in any power sector reforms to create a vibrant power sector,” Kariuki said.
The bank currently has no projects running on the development of green energy but Kariuki said they are hoping to work with the government to develop a just energy transition plan that will constitute a number of projects that the bank would eventually finance.
AfDB has a number of facilities in the form of grants, loans that the private sector can take up to be able to support green financing. One such facility is the Sustainable Energy Plant for Africa, a US$430bn fund that assists the private sector as far as energy is concerned.
Finance and Economic Development minister Mthuli Ncube told journalists Friday they explored various opportunities where the Abidjan-headquartered bank could give Zimbabwe further support.
The AfDB team met officials from the ministries of Finance, Energy, Industry and Agriculture.
“[In the meeting] we have basically reflected on the support that the bank is extending and providing to the country but we also explored various opportunities where the bank could give Zimbabwe further support in the energy sector,” Ncube said.
“We also talked about our issues with arrears clearance in terms of debt. These are the areas we have explored where the bank can assist. We are pleased we have heard a robust discussion and we will follow through with the office of AfDB here on areas that should be further explored,” Ncube added.
