Old Mutual Zimbabwe launches renewable energy fund
MOREBLESSING MARANGE
Old Mutual Zimbabwe, the country’s largest financial services group, has launched a renewable energy fund, to promote local projects and help Zimbabwe achieve its Sustainable Development Goals (SDGs), Business Times can report.
The fund is registered with capital markets regulator, the Securities and Exchange Commission of Zimbabwe (SECZIM) with Old Mutual Zimbabwe, the Government of Zimbabwe and several UN agencies, as initial investors.
Speaking at the launch, Old Mutual Zimbabwe CEO, Samuel Matsekete stressed that the fund aims to deliver more than just returns, with an emphasis on sustainability concerns and social impacts.
“The fund brings together partners such as Old Mutual, the Government of Zimbabwe, the UN agencies and private sector investors. The fund aims to provide financial returns and social impact, benefiting investors and those involved in renewable energy projects along the value chain. Our target is US$100m, with US$20m already committed to specific projects.
“The design of the fund is such that we would like to deliver to investors more than just returns. Sustainability has got demands. These demands are being emboldened by legislation and regulatory requirements. A platform like the Renewable Energy Fund serves the purpose to fulfil some of those requirements for sustainability,” Matsekete said .
He added: “On the other hand, we are seeking to make social impacts in terms of who is investing, but who is also benefiting from the renewable energy assets that will be funded through this fund.
“Our commitment to investing in renewable energy is evident in our strategic focus on solar and hydro-energy projects.
These projects align with our mission to promote sustainable development and provide tangible solutions to Zimbabwe’s energy challenges.”
Zimbabwe is currently facing an energy crisis crippling hope for investment in the sector. It is critical that energy transition to a green economy as the process requires favorable funding conditions and low cost capital.
Permanent Secretary in the Ministry of Energy and Power Development, Dr Gloria Magombo weighed in saying:“The National Renewable Energy Policy envisages that the country should add 2 100 megawatts of renewable energy or 26.5% of renewable energy contribution by 2030.
More importantly, the policy clearly pronounces that a green fund responsible for funding renewable energy and energy efficiency projects shall be established.
Thus, this fund is a key milestone in the implementation of our renewable energy policy.
The government cannot achieve this alone and we call upon our partners and stakeholders to work together to achieve the targets.”
She added: “The fund from Old Mutual will go a long way towards increasing the share of renewable energy mix in the grid and also increase energy access in off-grid areas”
Renewable energy expert and CEO of Power Giants Africa, Engineer Edzai Kachirekwa said : “The establishment of an integrated energy resource plan is highly commendable as it is vital for the development of renewable energy infrastructure and implementing the sustainable development goals (SDGs) critical for the attainment of an upper middle income society.”
