Sun over water: IEUG bags US$250 mln for Kariba floating solar
The Intensive Energy User Group (IEUG) recently unveiled a series of ambitious infrastructure projects that could reshape Zimbabwe’s economic trajectory.
The IEUG recently attended the Africa Finance Forum in Rabat, Morrocco, with the intention of promoting the floating solar project on Kariba Dam.
The IEUG team was joined by a team from the Ministry of Finance, Economic Development and Investment Promotion and officials from the Zimbabwe Investment Development Agency.
Among the highlights was the oversubscription of the US$250 million Kariba floating solar project, supported by the African Development Bank (AfDB).
This landmark initiative comes alongside a US$3 billion regional railway rehabilitation programme and a US$600 million road development plan from Beitbridge to Chirundu.
For Zimbabwe, still recovering from economic stagnation and debt challenges, these projects represent a rare confluence of opportunity, innovation, and risk.
The floating solar project on Lake Kariba has garnered widespread attention as a potential game-changer in Zimbabwe’s energy landscape. As IEUG representative Eddie Cross explained in an address to members, “The project not only leverages unused space on the reservoir but also has the potential to complement hydropower, reducing dependency on fossil fuels.”
This synergy could bolster Zimbabwe’s energy mix while addressing chronic electricity deficits exacerbated by climate-induced hydrology challenges.
In an interview with the Business Weekly on the matter, Eng. Remembrance Dakwa emphasised that floating solar technology offers dual benefits which are renewable energy generation and reduced evaporation from the reservoir.
“This is especially critical for Kariba, where water levels directly influence energy output,” he noted. The project aligns with global trends toward green energy and demonstrates Zimbabwe’s commitment to sustainable development.
However, developmental economist Dr Chitambara cautioned against over-optimism.
“The initial feasibility studies must address the socio-economic implications, particularly for communities reliant on Lake Kariba for fishing and tourism,” he asserts.
Additionally, successful implementation requires robust governance to ensure transparency and accountability in fund utilisation.
Currently, Zimbabwe’s power supply averages around 1 250MW, against a peak demand of about 1 800MW, resulting in a deficit of up to 550MW.
The Government insists these levels do not constitute a crisis.
“We have a marginal deficit. Our power supply level averages 1 250MW against an average peak demand of 1 800MW, leaving a deficit of a maximum of between 350MW and 550MW depending on daily demand,” said Minister of Energy and Power Development, Edgar Moyo in November.
“Calling it a power crisis would be an exaggeration. We are just facing a marginal deficit caused by winter demand.”
At the meetings in Morrocco, Cross also spotlighted the US$3 billion railway rehabilitation initiative and the US$600 million road project. Both projects aim to revitalise Zimbabwe’s transportation infrastructure, crucial for facilitating regional trade and economic integration.
The regional approach to railway rehabilitation, supported by European pension funds and guaranteed by the AfDB, has significant implications.
In an interview with CNBC Africa, Sanlam senior investment analyst John Rahm highlighted the strategic importance of the North-South Railway Corridor. “By connecting Katanga’s mineral-rich areas to Mozambique’s ports, this project could transform Zimbabwe into a regional logistics hub,” he explained.
The Beitbridge-Chirundu road project is another critical undertaking. According to Cross, addressing Zimbabwe’s poor track record with international loans remains a sticking point.
“The private sector model, with a long-term concession and projected revenue streams, could restore credibility,” he argued. However, ensuring that revenue collection mechanisms are transparent will be pivotal.
Broader implications for Zimbabwe’s economy
Dr Chitambara stressed that while these projects could stimulate growth, they also pose risks. “Borrowing for infrastructure can be a double-edged sword. Without efficient execution and management, the projects could exacerbate Zimbabwe’s debt burden instead of alleviating it,” he warned.
The success of these initiatives hinges on Zimbabwe’s ability to navigate several critical issues such as debt sustainability as the country’s strained relationships with international lenders remains a concern.
Although Cross’s report highlighted positive reception from financial institutions, securing guarantees and honouring repayment commitments will be essential.
Cross’s emphasis on private sector-driven models marks a departure from traditional state-led development. Rahm believes this shift is prudent. “The private sector brings discipline and efficiency, reducing the risks associated with government mismanagement,” he argued.
The AfDB’s endorsement of a regional approach to railways and energy projects underscores the interconnectedness of African economies. Eng. Dakwa added, “Zimbabwe must capitalise on its geographic advantage as a gateway for trade within Southern Africa.”
While green energy projects like Kariba’s floating solar array are commendable, their long-term success will depend on minimising adverse impacts on local communities. Transparent stakeholder engagement is non-negotiable.
Cross’s optimism reflects the enthusiasm of a nation poised for transformation, yet the road ahead is fraught with complexity. The Kariba floating solar project, railway rehabilitation, and road expansion each hold the potential to elevate the country’s economic standing. However, they also demand meticulous planning, prudent financial management, and unwavering commitment to transparency.
As Dr Chitambara aptly concluded, “Zimbabwe stands at a crossroads. These projects could mark the beginning of an economic renaissance or a continuation of its struggles with inefficiency and debt. The difference lies in execution.”-ebsinessweekl
