Old Mutual secures US$18m to accelerate renewable energy push

CLOUDINE MATOLA

Old Mutual Zimbabwe, the country’s largest financial services group, has raised US$18m under its flagship renewable energy, Business Times can report.

Launched in 2024, the Renewable Energy Fund is a cornerstone of efforts to mobilise long-term capital into clean energy projects, positioning Zimbabwe to accelerate progress toward its Sustainable Development Goals (SDGs) while easing persistent power deficits.

However, despite early traction, the fund’s scale-up now hinges on critical policy alignment.

Speaking on the sidelines of the group’s analyst briefing on Thursday, chief executive officer Samuel Matsekete revealed that while capital mobilisation is on course, structural enablers, particularly regulatory approvals and investment incentives,remain a binding constraint.

“What we have raised so far is about US$18m. We are on track, but we could have raised more,” Matsekete said.
“We now need to ensure that all the required conditions for scaling up the fund are in place, and that process is ongoing through our engagements with policymakers and regulators.”

The fund, structured as a blended finance vehicle, is designed to pool capital from government, development agencies and private investors to de-risk renewable energy investments and crowd in larger institutional funding.

Anchored by the Government of Zimbabwe, the United Nations Development Fund, the UN Capital Development Fund, and Old Mutual itself, the initiative represents one of the most ambitious attempts yet to structure bankable green financing in the domestic market.

“This fund is a deliberate effort to aggregate and channel capital into renewable energy projects at scale,” Matsekete said.
“We have always invested in renewables, but this vehicle gives significantly more traction to that effort.”

The fund’s initial target is to raise US$100m over a three-year horizon, a goal that now appears increasingly contingent on unlocking key policy incentives such as prescribed asset status and regulatory clarity.

In a signal of the model’s growing relevance, Zimbabwe’s blended finance framework is already attracting international attention, with at least three countries expressing interest in replicating the structure.

“This fund is being presented as a model for how blended finance can support renewable energy,” Matsekete said.
“Development finance comes in to de-risk the investment, while private capital benefits from more predictable, risk-adjusted returns.”

But he issued a stark warning: delays in fully operationalising the fund could see Zimbabwe lose its competitive edge.

“We must not lose the opportunity to scale this fund. If we delay, other markets will move faster and attract the capital we are targeting.”

Beyond renewables, Old Mutual is recalibrating its broader funding model, shifting away from expensive external credit lines toward lower-cost deposits and alternative financing structures.

The group has maintained relationships with key international lenders, including the African Development Bank, European Investment Bank, and Trade and Development Bank.

“We value those partnerships,” Matsekete said.
“However, we are being more deliberate in how we draw down, while increasing access to cheaper sources of funding.”

The strategy is aimed at responding to growing demand for affordable credit while protecting margins in a high-cost environment.

“The businesses we finance are demanding lower rates. We must adapt to ensure our lending remains accessible and competitive.”

The group’s financial results underscore its capacity to drive large-scale initiatives.

Profit after tax surged 43% to US$40.2m in 2025, up from US$28.1m in 2024, while revenue rose 29% to US$194.8m from US$151.1m.