VICTORIA FALLS — The United Nations (UN) has announced a significant boost to its Zimbabwe Joint Sustainable Development Goals (SDGs) Fund, with its seed capital swelling from US$10 million to US$45 million, signaling a surge in interest in renewable energy projects in the country.
Edward Kallon, the UN resident coordinator, revealed this development at the recently concluded fifth edition of the International Renewable Energy Conference and Expo held in Victoria Falls.
He disclosed that financial services powerhouse Old Mutual has been appointed to oversee the management of the fund.
“Investing US$45 million in this fund demonstrates a tangible commitment to driving sustainable development and progress in our nation,” Kallon stated during the conference.
“Old Mutual has been entrusted with managing this renewable energy fund, leveraging their expertise and dedication to sustainable finance.
“Together, we will harness the power of partnerships to unlock the transformative potential of renewable energy and pave the way for a brighter future.”
He expressed gratitude for the initial contribution of US$10 million received from the Multi-Partner Trust Fund (MPTF) through the UN SDG Fund secretariat in New York, which laid a solid foundation for the UN’s renewable energy initiatives in Zimbabwe.
Zimbabwe energy investment challenges
With Zimbabwe’s external debt exceeding US$20 billion, the country has faced challenges in securing international investment support for vital energy projects.
The renewable energy fund aims to address this gap by mobilizing resources and facilitating investments in renewable energy solutions across the nation.
“This flagship project, jointly developed by the Ministry of Energy and Power Development and four partnering UN agencies, is aimed at promoting sustainable development and advancing progress across the nation,” Kallon explained.
Old Mutual has committed US$10 million to the renewable energy fund, with additional commitments from the Treasury totaling US$1 million.
The company has already invested in six renewable energy projects with a combined generation capacity of 42 megawatts (MW), contributing to the National Development Strategy 1 and ongoing efforts to achieve sustainable development goals by 2030.
Takura Mudekunye, Old Mutual Zimbabwe’s group chief financial officer, highlighted the fund’s role in mobilizing resources and facilitating renewable energy solutions across Zimbabwe.
“The fund will be launched onto the market soon,” Mudekunye confirmed.
The UN’s renewable energy fund, established last year, aims to address financing barriers by catalyzing local investments in renewable energy projects, leveraging local financial markets to finance projects with a return on investment while advancing social impact for the acceleration of SDG achievement in Zimbabwe.
