Afreximbank backs Lake Kariba floating solar project

Businessman Eddie Cross's company, Green Hybrid Power Private Limited, has signed a landmark multimillion-dollar funding agreement that will pave the way for the development of a pioneering floating solar photovoltaic power project on Lake Kariba  -  the world's largest man-made lake.

The project aims to significantly boost Zimbabwe's domestic power generation capacity, helping to close the substantial electricity supply gap currently faced by the country.

Zimbabwe's peak electricity demand hovers around 2,200 megawatts (MW), while actual generation often fluctuates between 1,000 MW and 1,400 MW, forcing the country to rely heavily on imports to meet demand.

Green Hybrid Power's agreement, a US$4.4 million project preparation facility extended by the African Export-Import Bank (Afreximbank), will fund critical preparatory work including bankability and feasibility studies, as well as the hiring of transaction advisors for the ambitious 1-gigawatt (GW) hybrid floating solar system planned on Lake Kariba.

The project will be implemented in two phases, with the initial pilot phase targeting 500 MW of generation capacity.

All power generated during the pilot phase will be sold to the Intensive Energy Users Group (IEUG)  -  a consortium of Zimbabwe's leading industrial and mining energy consumers  -  under a 20-year "take-or-pay" power purchase agreement with cost-reflective tariffs.

The initiative is expected to deliver affordable, reliable electricity that will support value addition and beneficiation of Zimbabwe's mineral resources, thereby enhancing the country's foreign exchange earnings.

This project preparation facility marks a crucial first step toward unlocking an estimated US$350 million investment for the full-scale development.

The deal was formalized last month during the 32nd Annual Meetings of Afreximbank (AAM2025) in Nigeria, with Mrs. Kanayo Awani, Executive Vice President for Intra-African Trade and Export Development, signing on behalf of Afreximbank, and Mr. Eddie Cross, Green Hybrid Power chairman, signing for the company.

This agreement forms part of a broader wave of project preparation deals secured by Afreximbank in 2025, expected to unlock nearly US$1 billion in investments across multiple sectors.

Zimbabwe has actively been issuing renewable energy licenses to Independent Power Producers (IPPs) as part of its strategy to diversify energy sources and boost local generation capacity.

The Zimbabwe Energy Regulatory Authority (ZERA), responsible for licensing, has granted more than 171 IPP licenses to date, providing standardized project support agreements to ensure financial viability.

The country's energy shortage has been exacerbated by drought-induced low water levels at Kariba Dam, aging infrastructure, and financial constraints, resulting in frequent power outages that disrupt households, businesses, and essential services.

The Green Hybrid Power project is poised to play a key role in alleviating Zimbabwe's power woes and steering the nation toward a more sustainable and secure energy future.