Oscar J Jeke - Zim Now Reporter
The Government of Zimbabwe has signed a landmark agreement with European energy funder InfraCo Africa to advance the long-awaited 30 megawatt Vungu Solar Project, marking a significant step in the country’s push to attract private investment into the energy sector.
The agreement, known as a Government Project Support Agreement, provides guarantees to Independent Power Producers, including assurances of cost-reflective tariffs, a reliable power offtaker, and the ability to repatriate profits. These provisions are designed to mitigate investor concerns around currency volatility and tariff risk key barriers to financing renewable energy in Zimbabwe.
The Vungu Solar Project, located in the Midlands Province, will be developed in partnership with local companies Energywise and Impala Power. The project was initially proposed in 2014 and has now secured international backing through InfraCo Africa, which is part of the UK-, Dutch-, and Swiss-funded Private Infrastructure Development Group.
“This project represents a breakthrough for renewable energy investment in Zimbabwe and demonstrates our commitment to unlocking clean energy through public-private collaboration,” said an official from the Ministry of Energy and Power Development at the signing ceremony.
InfraCo Africa has pledged an initial investment of US$1.5 million to support the development phase. Once completed, the 30MW plant is expected to feed electricity directly into the national grid, contributing to reduced power shortages and lowering the country’s reliance on fossil fuels.
The Vungu project is among several private renewable energy initiatives receiving government support under the GPSA framework. To date, Zimbabwe has signed support agreements for over 271MW worth of clean energy projects, as the country seeks to increase its renewable energy share and boost electrification.
The development comes amid ongoing power challenges in Zimbabwe, where frequent outages and aging infrastructure continue to hamper economic growth. Government say the Vungu project is part of reforms aimed at liberalizing the energy sector and positioning Zimbabwe as a viable destination for green energy investment.
Once operational, the Vungu Solar Project is expected to reduce greenhouse gas emissions by approximately 75,000 tonnes of CO₂ per year
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