The Second Republic has launched the Zimbabwe Renewable Energy Fund (ZimREF), an ambitious and transformative vehicle aimed at raising over US$100 million in blended finance for renewable energy investments, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube, has said.
In his remarks at the United Nations Joint Sustainable Development Goals (SDG) Fund High-Level side event on “Catalysing change: Unlocking impactful financing at scale through the UN Joint SDG Fund”, in Seville, Spain, yesterday, Prof Ncube said Zimbabwe was facing an energy deficit.
He explained that access to reliable electricity remained limited to a significant portion of the population, especially in rural and underserved areas.
Prof Ncube said the energy shortfall constrains economic productivity and creates a gap on critical social services and hinders progress on climate goals.
He said it was within this context that the Government, working in collaboration with the United Nations system and the private sector represented by Old Mutual Zimbabwe, launched ZimREF.
“ZimREF is a flagship initiative under the Joint SDG Fund Programme on catalysing investments into renewable energy for the acceleration of the attainment of the SDGs in Zimbabwe, designed to mobilise over US$100 million in blended finance for renewable energy investments that are inclusive, gender-responsive and commercially viable."
“This Fund is not just a financing mechanism, but a strategic tool to accelerate SDGs, drive green industrialisation, and fulfil our commitments under the Paris Agreement."
“Zimbabwe’s commitment to reducing emissions by 40 percent below business-as-usual levels by 2030 under its Revised Nationally Determined Contributions (NDCs) views renewable energy as a central pillar of that commitment.”
Prof Ncube said to enable this transformation, the Government has conferred Prescribed Asset Status to the ZimREF, which will unlock domestic capital from pension funds and insurance companies.
It has also provided initial seed capital of US$1 million through the Infrastructure Development Bank of Zimbabwe (IDBZ).
Further, the Government has put in place enabling regulatory reforms, including net metering and third-party wheeling regulations, tax incentives for renewable energy projects, guaranteed offtake arrangements through Independent Power Producer (IPP) frameworks, and liberalised the energy market.
Prof Ncube said the policy measures are practical tools to de-risk investment and signal Zimbabwe’s readiness to scale up private capital investments for public good.
“ZimREF is structured as a professionally managed, blended finance facility anchored by the Old Mutual Investment Group Zimbabwe.
“It combines equity, debt and guarantees to support a wide spectrum of renewable energy solutions, ranging from solar parks and mini-grids to cold storage systems, e-mobility and solar water pumping for agriculture,” he said.
Already, the Fund is deploying capital investments to projects such as the Guruve Solar Park, Mater Dei Hospital Solar Initiative, and community-based electrification projects across the country.
The investments are transforming energy access, supporting health, education and livelihoods, especially for women, youths and rural communities.
Prof Ncube said Zimbabwe has laid the groundwork and is now calling on international development partners and investors “to join us in this effort”.
“ZimREF is actively seeking additional investment to expand its reach and deepen its impact.
“The Fund’s US$100 million+ target is ambitious but achievable and necessary to close our energy access gap and power inclusive economic growth,” he said.
Zimbabwe is offering a bankable pipeline of projects (Zimbabwe Energy Compact), a credible fund manager with regional experience, a de-risked and transparent governance structure, and policy framework fully aligned with green growth, climate resilience and SDG delivery initiatives.
ZimREF is not just for Zimbabwe, but a model of Public-Private-UN collaboration that can be adapted to and replicated across the Global South, said Prof Ncube.
“This initiative proves that even in challenging macroeconomic environments, innovation, partnership and commitment can drive sustainable finance to scale,” he said.
In remarks in the General Debate of the Fourth International Conference on Financing for Development, Prof Ncube said the time has come for honest reflection, given that the present global approach to development financing lacks adequacy and fairness.
The SDGs face a financing gap of between US$2,5 trillion and US$4 trillion annually, a figure that continues to grow.
Prof Ncube said official development assistance is in decline and longstanding commitments by developed countries, including the pledge to allocate 0,7 percent of their Gross National Income (GNI), remain largely unfulfilled.
Developing countries, mainly in Africa, are burdened by mounting debt, the continued global tightening of monetary policy, illicit financial flows, unilateral coercive measures (UCMs), the adverse effects of climate change and geopolitical divisions, resulting in a reversal of development gains in some regions.
Prof Ncube said to achieve the goals of the 2030 Agenda, there is a need to “move with resolve, towards bold, structural reforms grounded in equity, solidarity, and mutual accountability”.
“This conference must serve as the forum to recommit to equity, solidarity and shared responsibility. A moment to reshape the international financial architecture into one that is fair, inclusive and fit for purpose.
“Zimbabwe, therefore, welcomes the adoption of the FfD4 (Fourth International Conference on Financing for Development) Outcome Document and the specific measures it outlines to mobilise adequate resources and unlock the high levels of investment required to bridge the SDG financing gap.
“Our focus must now shift decisively to full and effective implementation,” he said.
Prof Ncube highlighted three critical areas of action, namely reforming the global financial architecture to allow, among other things, developing countries whose economies are most affected by International Financial Institutions’ decisions, to have a fair voice and representation.
The other action area is the urgent reform of the sovereign debt architecture and dealing with illicit financial flows, which have seen Africa continuing to lose billions of dollars annually.
“International co-operation on tax is therefore not optional. Zimbabwe pledges full support to the UN Framework Convention on International Tax Co-operation and its early protocols, which we believe can usher in a new era of global tax equity,” said Prof Ncube.
The conference, which started on Monday, ends tomorrow.
Originally published by https://www.heraldonline.co.zw/
Note
All joint programmes of the Joint SDG Fund are led by UN Resident Coordinators and implemented by the agencies, funds and programmes of the United Nations development system. With sincere appreciation for the contributions from the European Union and Governments of Belgium, Denmark, Germany, Ireland, Italy, Luxembourg, Monaco, The Netherlands, Norway, Poland, Portugal, Republic of Korea, Saudi Arabia, Spain, Sweden, Switzerland for a transformative movement towards achieving the SDGs by 2030.
