Staff Reporter
Representatives from Shandong Dingneng New Energy Company Ltd., a prominent Chinese energy firm, have expressed keen interest in investing in the country's energy sector.
According to a source within the Ministry of Energy and Power Development, the delegation, led by the company’s chairman, Liu Lining, has embarked on a comprehensive exploration of energy opportunities in Zimbabwe.
The source further disclosed that the delegation has been meeting with all stakeholders to get details on the requirements for getting a licence to mine energy minerals, such as coal.
“Meetings have been held with various stakeholders, including high-profile officials from ZESA Holdings, ZETDC, ZENTZ Southern African Power Pool (SAPP), EMA, and ZIDA, as well as the Ministers of Mines and Mining Development, and Energy and Power Development, to gather detailed information on licencing requirements for mining energy minerals, such as coal,” said the source.
In addition, the source revealed that the Chinese company was also exploring investment opportunities in greenfield and brownfield projects.
"The Chinese company is evaluating opportunities in both greenfield and brownfield projects. Specifically, they are contemplating ventures, such as the revitalization of Hwange Units 1-6 and the potential expansion of the Hwange Power Station through the addition of two new units, identified as 9 and 10. These units could significantly contribute to the country's energy capacity, with an estimated output ranging from 600 MW to 800 MW,” added the source.
Greenfield and brownfield investments are two types of foreign direct investment. With greenfield investment, a company will build its own, brand-new facilities from the ground up, while brownfield investment happens when a company purchases or leases an existing facility.
Economist Elton Ziki also weighed in on this significant development, stating, "This visit and expression of interest by the Chinese company in the energy sector is very important at this moment when the Government is considering various projects to ensure energy self-sufficiency."
Ziki further emphasised that the delegation's visit and keen interest in investing in Zimbabwe's energy sector were outcomes of the favourable investment policies established by the New Dispensation.
"The visit and expression of interest to invest in Zimbabwe is a product of the New Dispensation's conducive investment policies, evidence of commitment to the President's mantra, ‘Zimbabwe is open for business’, Ziki stated.
Meanwhile, the investment is poised to generate substantial employment opportunities, aligning with the national Vision 2030’s goal of elevating Zimbabwe to an upper-middle-income economy by 2030.
