Victoria Falls — THE Government is aggressively implementing a comprehensive de-risking framework, a move that is already generating significant international investor confidence through a strategy that encompasses fiscal guarantees, regulatory reforms, and a stable multi-currency regime.
This strategy forms a concerted bid to attract critical foreign capital and ignite its energy sector.
The Minister of Energy and Power Development, July Moyo, has been at the forefront of this campaign, presenting the country's new investment case to global financiers.
Keep up with the latest headlines on WhatsApp | LinkedIn
He revealed that the Government is strategically leveraging the testimonies of existing investors to validate the improved business climate.
"The last participation we went to Perth for what is called Australian Down Under and we were able to present now a fully-fledged presentation about what we expect the donors, the financiers to do
"We took some of our investors who could tell the story about what had happened, what they were experiencing in Zimbabwe in terms of not just the physical financing but the de-risking that has been put in place by the Government and we wanted them to talk, not us, about what has happened," said Minister Moyo.
This approach was repeated at the recent Africa Energy Week, where major players like Australian firm Invictus Energy, which is leading oil and gas exploration in Muzarabani, echoed the Government's assurances.
Minister Moyo said the core message is centred on mitigating perceived financial risks.
"I would like to tell the other investors about mostly the de-risking, it's in the area of de-risking that we wanted to emphasize because as the volatility in our financial markets is well known, but we are now operating and we have been operating a multi-currency regime and that multi-currency regime has given us some space of making sure that we can continue to operate," he explained.
To solidify these assurances, the Ministry of Finance and the Ministry of Energy have introduced a standardised Government Project Support Agreement for all energy investments.
Furthermore, in a landmark regulatory shift, the Government has opened the last mile electricity distribution to private sector players.
Minister Moyo elaborated on this policy.
"We have said the last mile should not be only a utility last mile. We have opened up to the private sector to actually become mini utility companies... that can take special areas and be able to buy bulk from the national utility," he said.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
This allows private mini-utilities to leverage national grid power while also incorporating renewable sources like solar and gas, creating diversified revenue streams.
This opening of the regulatory framework to private capital marks a pivotal step in de-risking the sector by creating multiple, scalable entry points for investors and fostering a more competitive and resilient energy landscape for Zimbabwe.
