The African Development Bank (AfDB) is stepping up its efforts to support renewable energy projects in Zimbabwe as the country faces ongoing electricity shortages. Speaking at a recent energy conference, Wale Shonibare, the Director of Energy Financial Solutions, Policy, and Regulation at AfDB, highlighted the urgent need for sustainable energy solutions to meet the growing demands of industries, particularly the mining sector.
“We have been approached by a number of mines who need electricity and are not getting enough from Zesa. They want to have green renewable electricity because these mining companies are targeting export markets,” Shonibare said
The pressure for greener energy sources is not just an environmental concern; export markets are beginning to impose additional taxes on carbon-based energy, a significant portion of which in southern Africa is coal-based.
Zimbabwe’s reliance on hydroelectric power has also been under strain, leading investors and companies to seek more reliable sources of renewable energy. “In Zimbabwe, you have hydro, but you are not getting as much as before, so there are investors and companies who want electricity directly, and a lot of that is renewable energy,” Shonibare said.
While specific figures on the new initiatives were not disclosed, Shonibare said AfDB is deeply involved in conversations around debt relief for Zimbabwe. The bank is advocating for an improved macroeconomic environment to attract private sector investment into viable sectors.
Governance issues within the energy sector Shonibare said were critical areas needing attention. “Typically, in the energy market, it is a utility that is buying the power that is paying for the energy. That utility needs to be able to pay and often times the utility needs to be able to collect the money from the electricity that it is generating,” Shonibare said
Shonibare stressed the importance of addressing these governance issues to ensure utilities can collect revenues and sustain operations. “You can’t have a utility that is buying expensive power from IPPs (independent power producers), from private investors, and not able to collect the money from the electricity that it is selling. So, there is de-risking to do with governance and that is also important. There is a risk around capacity,” he said.
AfDB’s support in promoting renewable energy and improving sector governance in Zimbabwe could play a crucial role in ensuring a sustainable and reliable power supply for the nation’s industries and citizens.
