Several major miners in Zimbabwe are pursuing $182 million in funding to build 200 megawatts of solar power within the country, according to the chief of the renewable energy company leading the projects.

The deal was struck between Grid Africa and the Intensive Energy User Group, which includes members such as the Zimbabwean branch of Impala Platinum Holdings Ltd., Afrochine Smelting Pvt. Ltd., a subsidiary of Tsingshan Holdings Group Co., and RioZim Ltd., among others.

“Talks with various funding partners, such as mining companies, banks, developmental financiers, and vendors like Power China and RIC Energy, are progressing. The financing structure will consist of about 70% debt and 30% equity,” said Norman Moyo, co-founder and chief executive of Grid Africa during an interview.

Zimbabwe is grappling with an energy deficit that frequently forces the state-owned power utility to impose rolling blackouts to manage supply and demand, Bloomberg reports.

The situation has been worsened by the most severe drought in 40 years, which has reduced output from hydropower plants.

As a result, many miners depend on imported electricity from neighbouring Mozambique to maintain operations.

Furthermore, Zimbabwe is home to the world's second-largest platinum reserves and rich chromium ore deposits. Mining plays a crucial role in the country's economy, accounting for approximately 12% of its GDP and about 80% of its exports, according to the US International Trade Administration.

Access to additional and more affordable electricity is expected to significantly boost the mining sector's contribution to economic growth.

The initial phase of the agreement targets mining companies that have ready-to-implement projects with the required licences but lack funding, according to Moyo. 

“Large mines benefit from dedicated grid infrastructure, enabling them to source power flexibly. Transitioning to local solar generation will offer significant cost and foreign exchange savings compared to importing power,” he stated.

Grid Africa originated from Distributed Power Africa, a company initially associated with Zimbabwean billionaire Strive Masiyiwa.