The funding agreement has been formalised between Grid Africa and the Intensive Energy User Group (IEUG). Notable IEUG members include Impala Platinum Holdings Ltd.’s Zimbabwean subsidiary, Tsingshan Holdings Group Co.’s Afrochine Smelting Pvt. Ltd, and RioZim Ltd., among others. The initiative aims to address the severe power shortages exacerbated by the worst drought in four decades, which has drastically reduced hydropower output and led to frequent rolling blackouts managed by the state-owned power utility.
Norman Moyo, co-founder and chief executive of Grid Africa, highlighted that “Talks with various funding partners, such as mining companies, banks, developmental financiers, and vendors like Power China and RIC Energy, are progressing.” He detailed that the financing structure will comprise approximately 70% debt and 30% equity.
Zimbabwe’s energy crisis has been compounded by a reliance on imported power from Mozambique, which adds to operational costs for miners. By investing in local solar power, the sector aims to reduce these costs and alleviate the foreign exchange burden. Moyo indicated that “The first phase of the deal focuses on mining companies with ready-to-go projects that have the necessary licenses but lack financing.” The transition to local solar generation is expected to yield significant savings and enhance operational flexibility.
The strategic move towards solar power comes at a crucial time. With Zimbabwe holding the second-largest platinum deposit and high-grade chromium ores globally, mining is a cornerstone of the nation’s economy, contributing approximately 12% to GDP and constituting around 80% of exports, as reported by the US International Trade Administration. Additional, cost-effective electricity is poised to further bolster the sector’s economic impact.
Grid Africa, an offshoot of Distributed Power Africa, initially associated with Zimbabwean billionaire Strive Masiyiwa, is spearheading this transformative project.
