Zimbabwe seals 500MW power deal

The new 500 megawatt solar power station being built by Skypower Global in Zimbabwe moved closer to fruition yesterday as more detail was added to the investment deal on the sidelines of the UN Climate Change Summit, COP27.

Witnessing the signing of the master agreement addendum, with approval, at the Zimbabwe pavilion, President Mnangagwa said Zimbabwe is the most attractive destination for investment as the Government has created a conducive economic environment for foreign capital investment.

After the implementation of the first phase of the project, the United Arab Emirates-based company will set up an assembly plant in Zimbabwe to facilitate transfer of skills and knowledge to Zimbabweans.

The extra details and commitments were signed by Energy and Power Development Minister Zhemu Soda on behalf of Zimbabwe and Skypower Global president Kerry Alder.

Besides President Mnangagwa, also in attendance were Ministers Dr Frederick Shava (Foreign Affairs and International Trade), Professor Mthuli Ncube (Finance and Economic Development), Nqobizitha Mangaliso Ndlovu (Environment, Tourism and Climate), Dr Sithembiso Nyoni (Women Affairs, Community, Small and Medium Enterprises) and Professor Amon Murwira (Higher and Tertiary Education, Science and Technology Development).

The new power station not only allows Zimbabwe to keep growing economically with adequate power coming online as needed, but that new power station has a zero carbon footprint. The investment will also encourage other similar investments into Zimbabwe's infrastructure.

The deal is a culmination of President Mnangagwa's visit to the UAE in March and is testimony to the success of Government's engagement and re-engagement drive.

In August, Cabinet approved the framework for the energy deal while pushing for its implementation. President Mnangagwa expressed confidence that investment by the global company would see more investors pouring capital in the country.

"Skypower is a global company, it doesn't just go to any country and put up their money. They do due diligence where they want to put their money," said President Mnangagwa.

He was happy that after due diligence, the company found Zimbabwe to be an ideal investment destination.

"In our quest to modernise and industrialise, energy is a critical enabler and I am happy that after my sermon to Kerry (Adler) that Zimbabwe is open for business and a safe destination for investment, he accepted the gospel.

"We are benefiting in terms of technology, skills and in terms of attracting global capital into our economy," said President Mnangagwa.

"I have no doubt that my Minister of Energy is quite happy because currently the economy is growing faster than he can generate power and now he can get some sleep. I want my ministers to perform ahead of the                                                    economy.

"Zimbabwe is open for business. Zimbabwe is a friend to all and an enemy to none. Zimbabwe is the most attractive destination for investment because we have created an economic investment environment that is conducive for foreign capital investment in our country."

Mr Adler said he was inspired to enter into the deal after an engagement with President Mnangagwa whom he found to be a great leader who is passionate about the development of his country and people.

"A few leaders have what his Excellency does. He has a passion in his heart to make this world a better place," said Mr Adler.

"The President not only took the initiative to engage with Skypower but also took the initiative to show us why Zimbabwe is a good investment destination."

He said the project will impact on the GDP for US$1,7 billion and create 16 000 jobs.

After the initial phase of the project, the company will set up an assembly plant in the country to transfer skills and knowledge to the locals.

Skypower has earned the enviable track record and global recognition as one of the largest and most successful independent power producers that develops, finances, builds, owns and operates large solar stations across the globe totalling 25 000MW.

Some of these stations are in bilateral agreements and contract awards to be built in the Middle East, Africa, and South East and Central Asia over the coming years.

The company has secured over 30 power purchase agreements representing billions of dollars' worth of long-term renewable energy sales to leading utilities and governments around the world.

Minister Soda said the agreement will deepen already existing relations between Zimbabwe and the UAE.