The Financing Challenge Behind Zimbabwe’s Energy Transition Takes Centre Stage at RE4Agri Discussion

Zimbabwe does not necessarily have a shortage of capital for renewable energy. It has a shortage of bankable projects capable of absorbing it.

That was one of the strongest messages from the Day Two plenary at RE4Agri 2026, where financiers, developers and development finance institutions examined what is holding renewable energy investment back, and what it will take to unlock the pipeline.

Day 2 of the Renewable Energy for Agriculture Conference started with an in-depth Plenary Session exploring how Zimbabwe can mobilise long-term capital, strengthen project bankability and de-risk renewable energy investments to accelerate the development of clean energy projects, particularly for agriculture and broader economic growth. The discussion brought together Davis Musoso, Head of Alternative Investments at Old Mutual Investment Group; Simbarashe Chikarango of Trade and Development Bank (TDB); Memory Mashingaidze, Co-Founder and Director of Great Zimbabwe Hydro and Tatanga Energy; and Fanwell Mutogo, Chief Executive Officer of the Bankers Association of Zimbabwe. The session was moderated by Tanyaradzwa Gumbo, Founder of Beyond Consulting.

Simbarashe Chikarango of Trade and Development Bank (TDB) put the challenge bluntly: “The fundamental disconnect is not a shortage of capital or a shortage of pipeline. Our view is that it is a shortage of investment-ready, bankable projects.”

Zimbabwe has a substantial number of licensed renewable energy projects, but relatively few have progressed to construction or operation. The gap reflects years of challenges around project preparation, land, feasibility studies, offtake arrangements, financial modelling and securing the necessary risk mitigation.

For developers, the journey can be painfully long. Memory Mashingaidze of Great Zimbabwe Hydro and Tatanga Energy said some projects can take 10 years to develop, making access to early-stage capital critical. She argued that limited domestic development finance often forces local developers to self-fund or bring in international partners, potentially diluting local ownership.

The financing challenge extends beyond project preparation.

Fanwell Mutogo of the Bankers Association of Zimbabwe highlighted the mismatch between banks’ relatively short-term deposits and the long-term capital required by renewable energy projects, as well as high funding costs and country-risk perceptions.

Institutional investors face their own hurdles, including currency risk, project scale and long payback periods. Davis Musoso noted that renewable energy projects can require significant foreign currency for imported equipment while generating local-currency revenues, creating a structural currency mismatch.

Building the right capital stack

The panellists argued that no single financier can solve the problem.

TDB can provide longer-tenor funding of 15–20 years, while equity from institutional investors, concessional finance, technical assistance, first-loss capital, and credit guarantees can collectively reduce risk and improve bankability.

Regional examples also show that risk can be structured rather than simply avoided through payment guarantees, escrow arrangements, political-risk insurance and portfolio guarantees.

For Zimbabwe’s agricultural sector, where reliable energy is increasingly critical for irrigation, processing and productive activity, unlocking this capital could be transformative.

The conclusion from the plenary was clear: the next phase of Zimbabwe’s renewable energy transition will depend not simply on attracting more money, but on building projects that money can confidently invest in.

As Chikarango concluded: “The fundamental disconnect is not a shortage of capital or a shortage of pipeline. Our view is that it is a shortage of investment-ready, bankable projects.”