Africa

Zimbabwe


SDG Finance - Catalytic Investment

Catalysing Investment into Renewable Energy for the Acceleration of the Attainment of the Sustainable Development Goals in Zimbabwe

Sustainable Development Goals

Brief Description

The Renewable Energy Fund will provide financing and technical assistance to renewable energy businesses in Zimbabwe.

Results

The joint programme is expected to start in April 2022, after the completion of the design and pre-feasibility phase in 2021.

Why

In 2020, only an estimated 44% of Zimbabwe's population had access to electricity. Lack of electrification, especially in rural areas, has caused losses in production across key economic sectors, including agriculture and tourism. While renewable energy has the potential to improve Zimbabwe's low electrification rates, inflation and currency risk have deterred the long term, low interest financing that renewable energy businesses need to grow.

What

The Renewable Energy Fund will combine technical assistance with investment to leverage US$ 31 million toward renewable energy businesses. The Fund seeks to create at least 750 jobs in the renewable energy sector, and create 180 GWhr renewable energy capacity.

How

The Renewable Energy Fund aims to reduce barriers to investment in renewable energy businesses by catalysing investments from both international and domestic investors. To ensure that projects are investable and successful, the Fund will also utilize technical assistance to support the projects it funds.

Quick facts

Allocated by Joint SDG Fund:
10,000,000 USD

Co-funding:
3,712,000 USD

Total Funding:
13,712,000 USD

Financial Leverage:
31,600,000 USD

UN Agencies:

UNESCO, UNDP, UN Women


National Partners:

Infrastructure Development Bank of Zimbabwe, Distributed Power Africa, ARCH Africa Renewable Power Fund LP, Oxygen Africa, Soventix, AEC South Africa, Mobility for Africa, Zimnat Asset Management, Centennial Power International Corp, Solarise – Centennial Confirmation of Funds, Financial Securities Exchange (Private) Limited (FINSEC), AKRIBOS Wealth Managers Pvt LtD, Old Mutual, CABS, New Sahara Ventures and ANF Capital, Soventix, MoneyMart Finance, Release By Scatec, AEC,