Western investors interested in Zimbabwe and Zambia’s energy sectors are seeking greater predictability, especially in areas such as legislation, the judicial system, and monetary policy.
This was highlighted by Jobst von Kirchmann, the European Union Ambassador to Zimbabwe, at the inaugural Zimbabwe-Zambia Energy Projects Summit in Victoria Falls. He emphasized that any potential shifts, such as a return to a mono-currency system, could deter investment, especially as Zimbabwe currently operates under a multi-currency system.
The topic of currency stability was also raised by John Humphrey, the British Trade Commissioner for Africa, who stressed the importance of a stable and predictable environment for long-term renewable energy investments. He noted that investments, particularly in sectors like renewables, require consistency over extended periods to ensure success.
The summit, which took place against the backdrop of a severe drought depleting the Kariba Dam reservoir and causing power outages, also focused on the need to diversify energy sources. Both nations are seeking to expand investments in wind and solar energy, with Vice President Constantino Chiwenga pointing out the significant potential for solar power given the abundant sunlight in both countries year-round.
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