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His Excellency Mr. Edward Kallon, the United Nations Resident and Humanitarian Coordinator has said the launch of the Renewable Energy Fund was a significant milestone for Zimbabwe’s journey toward a sustainable and prosperous future.
He made the remarks at the launch of the Renewable Energy Fund on 20 September 2024 at the Old Mutual Gardens in Harare. The event was graced by Dr. Gloria Magombo, Permanent Secretary of Energy and Power Development, and other senior Government Officials. Among the notable dignitaries were Mr. Samuel Matsekete, Group Chief Executive of Old Mutual; Heads of UN Agencies; and distinguished representatives from the private sector, civil society, and international organizations.
“It is my honor to stand before you today at the launch of the Renewable Energy Fund, a significant milestone for Zimbabwe’s journey toward a sustainable and prosperous future. Today’s event marks the convergence of ideas, partnerships, and investments aimed at addressing one of the most pressing challenges of our time—climate change and the critical role of renewable energy in achieving the Sustainable Development Goals (SDGs),” HE Kallon said.
The UN senior official tackled important issues around the subject as shared below:
The Importance of Sustainable Development Goals (SDGs)
He reaffirmed the critical importance of the 2030 Agenda for Sustainable Development. This universal framework, adopted by all United Nations Member States, provides a clear and actionable path for building a world that is socially just, economically inclusive, and environmentally sustainable.
Zimbabwe is no exception. As stakeholders work towards the 17 SDGs, they are reminded that these goals are interconnected. Energy, particularly SDG 7—ensuring access to affordable, reliable, sustainable, and modern energy for all—is a linchpin for achieving several other goals, including poverty eradication, improved healthcare, quality education, gender equality, economic growth, and of course, SDG 13, which calls for urgent action to combat climate change.
Renewable Energy: A Catalyst for Sustainable Development in Zimbabwe. Why Renewable Energy?
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 urgently needed. 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.
However, we must recognize that this transition is not only about reducing emissions or meeting energy demands. It is also about economic transformation—creating green jobs, promoting local industries, and empowering communities, particularly women and youth, who are often disproportionately affected by energy poverty.
Zimbabwe’s Energy Crisis and Challenges
Zimbabwe’s energy sector faces substantial challenges. The overall electrification rate stands at just 44%, with rural areas bearing the brunt of energy scarcity. This 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, favorable 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.
Stakeholders 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. And that is why today’s launch of the Renewable Energy Fund (REF) is so pivotal.
The Launch of the Renewable Energy Fund (REF)
HE Kallon said stakeholders celebrated the establishment of the Renewable Energy Fund (REF), managed by Old Mutual, with a clear mission: to provide much-needed financial support for renewable energy projects across Zimbabwe. This Fund will not only accelerate the deployment of renewable energy solutions but will also bring economic returns and social impact.
What sets this Fund apart is its innovative blended finance model. By leveraging both public and private capital, the REF will finance projects that are both bankable and socially impactful. This model 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).
Beyond financing, the REF also incorporates incubation support, helping local entrepreneurs develop bankable renewable energy projects. This is a significant step forward, as it empowers Zimbabwean innovators, particularly those in rural areas, to take part in the green economy and drive the country’s energy transition.
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.
The Role of Partnerships and Collaboration
HE Kallon said no single entity can achieve this energy transition alone. 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.
The launch demonstrated how collaboration can create transformative solutions. 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.
The United Nations Commitment to Renewable Energy in Zimbabwe
The United Nations, 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 broader efforts to drive sustainable development, reduce poverty, and ensure that Zimbabwe is better equipped to deal with the impacts of climate change.
Call to Action
To Government Leaders:
As policymakers, you hold the key to creating an enabling environment that fosters renewable energy investments. Prioritize the enactment of supportive policies, streamline regulatory processes, and incentivize public-private partnerships to accelerate the renewable energy transition.
To the Private Sector:
Old Mutual has set a strong example of how the private sector can be a driver of change. He called 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.
To All Stakeholders:
Stakeholders were urged not to underestimate the power of collective action. The decisions we make today will shape Zimbabwe’s energy future for generations. There was a call to commit to building a Zimbabwe where clean, renewable energy powers sustainable development, economic prosperity, and environmental stewardship. Together, stakeholders can turn this vision into reality.
HE Kallon said Zimbabwe stands at the crossroads of its energy future. Renewable energy presents not just a solution to current challenges, but a pathway toward a more sustainable, resilient, and prosperous Zimbabwe. The Renewable Energy Fund is a testament to what can be achieved when stakeholders unite their efforts toward a common goal.
“Now is the time for bold action. Let us seize this moment and become champions of renewable energy within our respective spheres of influence. The future of Zimbabwe’s energy landscape depends on what we do today. The time for action is now,” he added.