Zimbabwe's Largest Mining Companies Pursue $182 Million for Solar Projects

Some of Zimbabwe's largest mining companies are seeking $182 million to develop 200 megawatts of locally-produced solar power, according to Grid Africa, the renewables firm leading the projects.

An agreement has been signed between Grid Africa and the Intensive Energy User Group, which includes Impala Platinum’s Zimbabwean unit, Tsingshan Holdings’ Afrochine Smelting, and RioZim Ltd., among others.

Norman Moyo, co-founder and CEO of Grid Africa, stated that discussions with various funding partners, including mining firms, banks, and vendors like Power China and RIC Energy, are underway. The financing plan is expected to consist of around 70% debt and 30% equity.

Zimbabwe is grappling with an energy deficit, leading to frequent power outages by the state-owned utility and exacerbated by a severe drought that has reduced hydropower supplies. Many miners depend on imported electricity from Mozambique.

The country holds the world's second-largest platinum reserves and high-grade chromium ores, with mining contributing about 12% to Zimbabwe's GDP and around 80% of its exports. Additional, cost-effective electricity from local solar projects could boost the sector's economic impact.

The first phase of the project will focus on mining companies with licensed but unfunded solar projects. Moyo noted that transitioning to local solar power could provide significant cost and foreign exchange savings compared to imported electricity.

Grid Africa, which originated from Distributed Power Africa and had ties to Zimbabwean billionaire Strive Masiyiwa, is spearheading this initiative.