Zim Launches US$100 Million Renewable Energy Fund To Tackle Power Deficit
The Second Republic has launched the Zimbabwe Renewable Energy Fund (ZimREF), a transformative financing vehicle aimed at mobilising over US$100 million in blended capital to expand access to clean energy and close the country’s electricity gap.
The announcement was made by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube during a high-level United Nations Sustainable Development Goals (SDG) Fund side event in Seville, Spain.
Prof Ncube said Zimbabwe continues to face a significant energy shortfall, particularly in rural and underserved areas, which undermines economic productivity, disrupts essential services, and slows progress on climate goals.
“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,” he said.
ZimREF is being implemented in collaboration with the United Nations system and the private sector, including anchor investor Old Mutual Zimbabwe.
The fund blends equity, debt, and guarantees to support inclusive, gender-responsive, and commercially viable renewable energy solutions such as solar mini-grids, cold storage systems, e-mobility, and off-grid power for health and education.
According to The Herald, the Government has granted ZimREF Prescribed Asset Status to unlock domestic capital from pension funds and insurance companies.
It has also provided US$1 million in seed capital through the Infrastructure Development Bank of Zimbabwe (IDBZ), while introducing regulatory reforms including net metering, third-party wheeling, tax incentives, and guaranteed offtake arrangements to attract private investment.
Managed by Old Mutual Investment Group Zimbabwe, ZimREF has already begun deploying capital to projects such as the Guruve Solar Park, the Mater Dei Hospital Solar Initiative, and rural electrification schemes.
Prof Ncube said these investments are already improving energy access and supporting livelihoods, particularly for women, youth, and marginalised communities.
He called on international investors and development partners to support the fund’s expansion. “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’s Revised Nationally Determined Contributions (NDCs) commit to reducing greenhouse gas emissions by 40 percent below business-as-usual levels by 2030, with renewable energy positioned as a central pillar of that strategy.
Separately, addressing the Fourth International Conference on Financing for Development, Prof Ncube criticised the current global development finance system, citing its inadequacy and lack of fairness.
He warned that declining official development assistance, rising debt burdens, illicit financial flows, and climate shocks are reversing development gains in many African countries.
“This conference must serve as the forum to recommit to equity, solidarity and shared responsibility,” he said.
Prof Ncube welcomed the adoption of the conference’s Outcome Document and urged swift implementation of its measures to unlock large-scale investment and close the SDG financing gap.
He also called for urgent reform of the global financial architecture, including fairer representation of developing countries in international financial institutions, a coordinated sovereign debt framework, and stronger international tax cooperation.
“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,” he said.
