Catalysing Investment into Renewable Energy for the Acceleration of the Attainment of the Sustainable Development Goals in Zimbabwe
The Renewable Energy Fund will provide financing and technical assistance to renewable energy businesses in Zimbabwe.
The Joint SDG Renewable Energy Fund programme aims to address barriers to financing in the renewable energy (RE) space in Zimbabwe by catalysing local investments.
In Zimbabwe, the Joint SDG Renewable Energy Fund programme aims to address barriers to financing in the renewable energy (RE) space. This is done by catalysing local investments through the establishment of the SDG Renewable Energy Fund (SDG REF) which seeks to leverage local financial markets to support investment worthy renewable energy projects with positive social impact for the accelerated achievement of SDGs in Zimbabwe. The joint programme will, therefore, demonstrate how UN support drives the innovative model of Accelerated Local SDG Achievement (ALSA), and economic empowerment of communities through the transformational impact of introducing renewable energy technology with new entrepreneurship opportunities, income and job creation, and improved quality of life and the environment. The joint programme emphasizes gender responsive and inclusive renewable energy investments with a focus on productive uses. To address capacity gaps in pre-investment, investment and post-investment stages, the Partnering UN Organizations, through the joint programme, will leverage partnerships with international renewable energy-capacity building organizations and local money markets to increase access to funding by SMEs.
The Renewable Energy Fund is of paramount importance in unlocking domestic and international capital for investments into high impact SMEs and business ventures and kick-start the required initiatives and focus to achieve an RE-based pathway.
Zimbabwe is currently facing an acute energy crisis with an overall electrification rate reported as low as 44% in 2020, with supply of electricity for productive uses failing to meet demand. This has consequently resulted in loss of production in key economic sectors such as agriculture, mining and tourism value chains. Not only is the energy deficit more prominent in rural areas, but also women and youth are disproportionately affected. Overarching issue of inadequate financing and conducive investment terms for renewable energy and climate change projects remains an issue in the country.
The SDG RE Fund Programme directly contributes to the achievement of Sustainable Development Goal 7: "Ensure access to affordable, reliable, sustainable and modern energy for all”. 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.
The main achievement under the Joint SDG Fund Programme is the establishment of a Renewable Energy Facility to strategically leverage private sector to facilitate the growth of a gender responsive Renewable Energy Sector. The programme will also lead a full-scale demonstration of concept of Renewable Energy Fund funded and pipeline projects driving an innovative model of accelerated Local SDG Achievement (ALSA) and socio-economic empowerment of rural off-grid communities involved in various value chains. Increased capacity of SMEs, in particular/prioritizing women and youth enterprises to develop, access RE finance and implement RE projects.
The Joint SDG Fund Programme aims also to de-risk investment in Renewable Energy and foster the integration of small-scale RE businesses in the energy value chains through capacity building. The capacity building is especially aimed at women and youth which will lead to the proliferation of green energy enterprises, particularly those led by women and youth to foster the integration of small-scale RE businesses in the energy value chains.
The SDG Renewable Energy Fund is of paramount importance in unlocking domestic and international capital for investments into high impact SMEs and business ventures and kick-start the required initiatives and focus to achieve a RE-based pathway. The overall approach of the Joint SDG Fund Programme (JP) is based on the innovative model of Accelerated Local SDG Achievement ALSA, where the JP interventions are designed to use Renewable Energy uptake and capacity building initiatives to create an economic spinoff which will have catalytic effects in inducing growth in other related sectors through increased energy access. Since it is one of the first large-scale demonstrations in the region, insights from such demonstration and dissemination will be shared with SADC Secretariat and SADC Member states to further enable adoption of the ALSA Model in the region. By providing technical assistance to projects without necessary financial resources to access finances but whose projects been approved for funding, the JP also aims to bridge the gap that exists in the market and promote project implementation.
UNESCO, UNDP, UN Women, UNCDF
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,