Zimbabwe launches $30mln renewable energy fund

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Under the theme, ‘Catalyzing Investment into Renewable Energy for the Acceleration of the Attainment of the Sustainable Development Goals in Zimbabwe’, Zimbabwe has launched a Renewable Energy Fund that is expected to unlock over $30 million, which will be directed towards renewable energy projects in the southern African country.

The first of its kind in Zimbabwe, the UN Sustainable Development Goals (UN SDG)-Fund Initiative will lead to the extensive adoption of renewable energy technologies in an attempt to mitigate the country’s energy challenges while facilitating an enabling environment for green energy investment.

“The current energy challenges, coupled with climate challenges, call for one unified solution, a rapid and extensive adoption of renewable energy technologies in the country,” stated UN Zimbabwe Resident and Humanitarian Coordinator, Edward Kallon, adding, “I am pleased to announce that after two years of hard work, we have a solid program that we are here to launch today. The process that led to this launch has been a truly collaborative effort with the Government, the UN Development System and its UN Entities and other national stakeholders.”

Financing the fund is expected to derive primarily from Zimbabwean financial markets and regional and international development-focused entities, with African investment manager, Old Mutual Investment Group, committing $10 million; the international cooperation mechanism, the UN SDG Fund, committing $10 million; while the Zimbabwean Government, through the Infrastructure Development Bank of Zimbabwe, has committed another $1 million.

“This launch could not come at a better time. As we face energy challenges, creating the enabling environment for investment in renewable energy will be key for the success of our green agenda,” Kallon concluded.

With the potential to attract additional capital from the private sector, the Renewable Energy Fund is expected to facilitate an enabling environment for the participation of small- and medium-sized enterprises, women-owned enterprises, and regional and international development-focused entities within Zimbabwe’s renewable energy industry.

Poised to benefit local communities and demonstrate the value of renewable energy projects through the development of local green economies, and thus facilitating entrepreneurial opportunities and job creation, the Fund has been jointly developed by the Zimbabwean Government and the UN.