The United Nations Sustainable Development Goals Fund has approved $45 million for Zimbabwe’s programme to catalyse investments in Renewable Energy (RE) to accelerate the SDGs in the country.
The UN SDG-Fund is contributing $10 million to the programme while the Government of Zimbabwe, through the Infrastructure Development Bank of Zimbabwe (IDBZ) and local partners, are supporting the Renewable Energy programme with a total of $35 million.
The four-year programme, which is expected to kick off in April 2022, was jointly developed by UNESCO (Lead agency), UNWOMEN, UNDP and the Government of Zimbabwe. It aims to leverage private investments to support Renewable Energy-based projects to achieve the SDGs in Zimbabwe.
This programme will innovatively target Sustainable Development Goals 5, 7, 8, 9, 13 and 17, whilst harnessing the cross-cutting nature of these goals to achieve the rest of the SDGs.
The programme will also contribute to attaining several vital national priorities of the Government of Zimbabwe as spelt out in the National Development Strategy (NDS 1).
The United Nations Sustainable Development Cooperation Framework (UNSDCF 2022-2026) will work towards national goals on economic development, energy access, climate action, women and youth empowerment, and capacity development in Renewable Energy for productive uses.
The main intervention of the programme centres on the establishment of an innovative, inclusive and gender-responsive Renewable Energy Fund (REF) that aims to leverage private sector and financial markets to finance RE projects that have a return on investment while achieving social impact for the acceleration of SDG achievement in Zimbabwe.
The joint programme will therefore carry out a full-scale demonstration of the concept of the REF instruments driving an innovative model of Accelerated Local SDG Achievement and economic empowerment of communities through the transformational impact of introducing RE technology with new entrepreneurship opportunities, income and job creation, and improved quality of life and the environment.
To address capacity gaps in pre-investment, investment, and post-investment stages, the Partnering UN Organizations through the JP will leverage partnerships with international RE-capacity building organizations and local money markets to increase access to funding by SMEs. By focusing not just on investing in projects but also on building a technically skilled workforce in STEM, RE and ICT fields, the programme will have a long-term impact on increasing the uptake of RE in the country.
The active involvement of the United Nations system and Old Mutual Investment Group will provide credibility and a ‘halo effect’, thereby providing a wider stage and audience for the Fund’s activities. The Fund is expected to unlock over $30 million from the Zimbabwean financial markets and regional and international development focus entities, the bulk of which would otherwise not typically be directed towards RE financing.