By Conrad Mwanawashe
A fund that will finance renewable energy projects that are both bankable and socially impactful, has been launched in Zimbabwe.
Managed by Old Mutual, and aimed at improving the electrification rate from the current 44%, the Renewable Energy Fund (REF), comes with an innovative blended finance model and leverages both public and private capital.
It has been designed with sustainability at its core—ensuring that investments are viable while achieving key SDG targets, including energy access (SDG 7), climate action (SDG 13), and gender equality (SDG 5), according to Edward Kallon, United Nations (UN) Resident and Humanitarian Coordinator.
Kalon said the energy deficit has stifled economic growth across key sectors such as agriculture, mining, and tourism. Lack of access to reliable electricity hampers productivity, limits opportunities, and deepens inequalities, particularly for women and young people in rural areas.
“While the government has created an enabling policy environment with deregulated electricity markets, favourable independent power producer (IPP) licensing, and tax incentives, significant barriers remain. Inadequate local financing, currency risks, off-taker risks, and cost-reflective tariffs are some of the major challenges that limit private sector investment in renewable energy projects.
“We cannot afford to let these barriers continue to impede progress. A sustainable energy future requires bold action—action that promotes inclusivity, fosters innovation, and catalyzes investments,” Kalon said.
Beyond financing, the REF also incorporates incubation support, helping local entrepreneurs develop bankable renewable energy projects.
“This Fund is more than just a financial instrument—it is a catalyst for change, addressing the financing gap and supporting projects that will deliver tangible benefits to communities, drive economic growth, and contribute to climate resilience,” he added.
Zimbabwe, like many other nations, faces a unique set of challenges and opportunities in the energy sector. The country’s electrification rate remains low, with rural areas particularly affected. Reliable energy access is fundamental to economic development, from boosting agricultural productivity to supporting modern healthcare and educational facilities.
Renewable energy, with its potential to transform communities, presents the solution we urgently need. Zimbabwe’s National Renewable Energy Policy (NREP) sets ambitious targets to increase renewable energy capacity from 142 MW to over 2,000 MW by 2030. This target aligns perfectly with the SDGs, especially SDG 7, and demonstrates Zimbabwe’s commitment to building a resilient, sustainable energy future.
No single entity can achieve this energy transition alone and Old Mutual, through its management of the REF, is demonstrating the power of aligning private capital with public development goals.
“Together with the government and the UN, this partnership is addressing critical financing challenges, making it possible to unlock the potential of renewable energy in Zimbabwe.
“Partnerships are the cornerstone of success. Governments, private sector leaders like Old Mutual, international organizations, civil society, and local communities must all work together to accelerate the renewable energy agenda. We are witnessing today how collaboration can create transformative solutions,” said Kalon.
The United Nations’ Commitment to Renewable Energy in Zimbabwe
The UN, through its various agencies, has been a committed partner in promoting renewable energy and climate resilience in Zimbabwe. Through the Zimbabwe Joint SDG Fund Programme, we are working with the government, local communities, and the private sector to mobilize investments, strengthen capacity, and build a more inclusive and sustainable energy sector.
“The launch of this Renewable Energy Fund complements our broader efforts to drive sustainable development, reduce poverty, and ensure that Zimbabwe is better equipped to deal with the impacts of climate change,” added Kalon.
The UN Rep called on policymakers to create an enabling environment that fosters renewable energy investments, streamline regulatory processes, and incentivize public-private partnerships to accelerate the renewable energy transition.
He also challenged the private sector to emulate Old Mutual’s “strong example of how the private sector can be a driver of change”.
“I call on other private sector actors to seize the opportunity to invest in Zimbabwe’s renewable energy landscape, ensuring that financial returns are accompanied by positive social and environmental impacts.
