Government Rolls Out Solar Incentives to Power Zimbabwe
Zimbabwe is intensifying efforts to attract Solar Investors at a time when electricity demand is rising sharply across industries, households, and mining operations. Ongoing power deficits have elevated renewable energy to the top of the national agenda, with solar power emerging as the fastest and most scalable solution to stabilise the country’s energy supply.
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| Deputy Minister of Energy and Power Development, Yeukai Simbanegavi |
Addressing Senators on Thursday, Deputy Minister of Energy and Power Development Yeukai Simbanegavi outlined a package of investment-friendly measures aimed at lowering the cost of renewable energy projects. These include duty-free importation of solar equipment, flexible profit repatriation for foreign investors, and policies that allow private producers to generate power and sell surplus electricity to the national grid—steps designed to strengthen energy security while ensuring investors remain commercially viable.
Reducing Investment Costs
To minimize the initial capital required for solar projects, the government has waived import duties on solar equipment.
“We allow investors to import equipment duty-free,” Deputy Minister Simbanegavi told Senators, emphasizing that this move directly lowers the barrier to entry for renewable energy projects.
Addressing a key concern for foreign direct investment (FDI), Zimbabwe now permits foreign investors to repatriate an agreed percentage of their profits in foreign currency. This flexibility depends on the scale of the investment, aiming to build confidence in the local market.
Powering the Nation Together
The Deputy Minister underscored the critical role of private power generation in stabilizing the national grid. The government is actively encouraging companies to generate their own power and feed the surplus back into the system.
“Varun Beverages, for example, can now generate its own energy and sell the excess to ZESA,” she cited as a success story of this initiative.
Ensuring Profitability
Sustainability is key. Simbanegavi assured investors that electricity tariffs are being adjusted to ensure they are cost-effective and allow for a return on investment.
“If a person generates and sells electricity, the amount should be adequate to cover the capital used to generate and distribute energy as well as to pay expenses. Investors must be able to make a profit,” she stated.
Common Questions
Investors importing equipment for renewable energy projects generally qualify. This is aimed at reducing startup capital costs for both small and large-scale solar installations.
Yes, through the net metering program, individuals and companies generating excess solar power can feed it into the national grid in exchange for utility credits.
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