zimbabwe’s industrial power users have secured $250m from the African Export-Import Bank (Afreximbank) to develop a floating solar project at Kariba Dam, the world’s largest man-made lake.

The Intensive Energy User Group (IEUG), comprising mining companies such as a former local unit of Rio Tinto and Mimosa, plans to establish a 250MW plant by mid-2026, according to a report by Bloomberg.

The project at Kariba Dam can be expanded to 1GW of solar capacity, implemented in phases of 250MW, with each phase costing $250m. It represents a significant step in enhancing Zimbabwe’s renewable energy infrastructure.

The development comes as Zimbabwe faces severe power cuts due to a prolonged drought. The Kariba Dam is currently generating an average of 125MW, only 11% of its installed capacity, due to low water intake.

“This transformative project will integrate solar energy with existing hydropower infrastructure boosting Zimbabwe’s renewable energy capacity, ensuring reliable power,” Afreximbank stated in a post on X.

The bank showcased its backing during a meeting of the Africa Investment Forum held in Rabat, Morocco from 4 December to 6 December 2024, as reported by ZimLive.

IEUG chairman Edward Cross was quoted by ZimLive as saying that the group received “oversubscribed” interest for financing, highlighting the strong support and interest in the floating solar initiative.

Cross stated: “We have formed a company to do an investment in new power generation, which is responsible for this project and we have a company that is responsible for transmission and distribution. In the transmission and distribution sector, we have to invest massively in the region.

“We estimate in the next five years, we have to invest $3bn in transmission to enable us to move power from areas of surplus to areas of deficit.”

IEUG holds a 25-year retail-supply licence and a 20-year transmission agreement to connect to the national grid.

It has been authorised to trade and pay for electricity in US dollars, facilitating the project’s financial transactions.