Local Zimbabwe company RioZim has announced that it is seeking investors to develop its 2,800 Megawatt (MW) coal-fired power plant project in Sengwa. This, after the announcement of the Chinese Bank ICBC to give up financing the project which requires an investment of 3 billion dollars.
In this regard, the company explained in a relayed press release that “we are still in the market to finance the project and we will work with all possible donors, including the Chinese”.
But, adds the company, in case of failure, RioZim indicates that another option under study is to transform the project into a thermal power plant, but this idea is subject to the results of the feasibility studies of the power plant in coal. No timetable has been set for the feasibility studies.
RioZim’s setback to its Chinese investor shows how the Middle Kingdom’s U-turn on overseas coal financing is forcing developing countries in Africa to rethink their energy strategies and betting much more on renewable energies by accelerating the energy transition.
Recall that in September 2021, China announced that it will no longer finance coal projects abroad. While the announcement was applauded by environmental activists, it also affects several coal-fired power plant development projects that could boost energy access in Africa.
Moctar FICO / VivAfrik