VICTORIA FALLS, Apr. 10 (NewsDay Live) – Old Mutual Zimbabwe chief executive Samuel Matsekete on Thursday called for local participants to explore alternative funding options, promote long-term savings, and develop financial products to increase the pool of funds available for capital projects.
Speaking during a panel discussion at the ongoing International Renewable Energy Conference and Expo in Victoria Falls, Matsekete said Zimbabwe is facing a significant funding gap, with an estimated uS$4,8 billion required for large-scale solar projects.
“To address the funding gap, we need to explore alternative options. Currently, our capital markets are limited, with a total value of around US$4 billion. This is evident in the Zimbabwe Stock Exchange and the banking sector,” Matsekete said.
“To increase funding for renewable energy projects, we need to promote long-term savings and develop other financial products.
“We also need to enhance financial inclusion and promote the use of banking services. By doing so, we can increase the pool of funds available for capital projects.”
He noted that there is need for banking institutions to negotiate favourable terms from foreign funders.
“However, our current capital financing arrangements are inefficient. We need to have to negotiate favorable terms with foreign funders. Without local participation, we compromise our negotiating leverage, and external funders dictate the terms,” Matsekete said.
“We are fragmented in our approach to renewable energy projects, with multiple projects funded by different sources.
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“This is suboptimal and not scalable. We need to think bigger and explore ways to pull resources together.”
