Old Mutual Zimbabwe has launched a US$100 million private equity fund targeting renewable energy investments.
The Old Mutual Renewable Energy Fund, backed by UN agencies and the government, aims to meet rising demand for green energy, says Sam Matsekete, Old Mutual CEO.
“Our commitment to investing in renewable energy is evident in our strategic focus on solar and hydro energy projects. These ventures align with our mission to promote sustainable development and provide tangible solutions to Zimbabwe’s energy challenges,” Matsekete says. “This fund aims to provide financial returns and social impact, benefiting investors and those involved in renewable energy projects along the value chain. Our target is $100 million, with $20 million already committed to specific projects.”
Old Mutual was already deepening its investment in renewables. Last year, the company invested US$26 million in alternative investments, which included solar projects. Among these are Solgas Energy, which has built a 5MW solar farm in Dete, the 25MW Centragrid plant in Nyabira, Richaw Solar in Gwanda, Kupinga hydro in Chipinge, and the 5MW Great Zimbabwe hydro plant.
Zimbabwe produces less than half of its power demand, and is looking to renewables to plug the gap. However, the push for green energy has been hurt by investor concerns over currency instability and energy tariffs. In response, government in 2022 announced some guarantees to investors. The National Renewable Energy Policy targets to add 2,100MW of renewable energy by 2030, according to Energy Permanent Secretary Gloria Magombo. This would ease expensive power imports, she says.
“The importation of power from other countries is costly and usually results in higher tariffs, thereby affecting our economy,” Magombo says. “With the operationalisation of this fund and additional investments in large-scale renewable energy projects, we expect to be energy self-sufficient in the near future.”
Old Mutual hopes to attract local and international investors into the fund, which has been registered with the Securities and Exchange Commission.
“The Old Mutual Renewable Energy Fund is not only a solid financial opportunity, but also a chance to contribute to a sustainable and prosperous Zimbabwe. By investing in this fund, you align your resources with a vision that prioritises responsible growth and well-being of our community,” says Marjorie Mayida, MD of Old Mutual Investment Group. Newzwire.com
