Zimbabwean solar project, Vungu Solar, yesterday announced that it has engaged Standard Bank South Africa, together with Stanbic Bank Zimbabwe to act as its mandated lead arranger (MLA) to support financial structuring and manage the debt financing process as the project moves towards financial close. The announcement was made at this year’s Zimbabwe-Zambia Energy Projects Summit (ZimZam). The 30MWac Vungu Solar project has worked, through a cross-government group led by the Ministry of Energy and Power Development, to conclude and pilot a set of standardised documents which, it is hoped, will accelerate development of new solar capacity in the country.

Vungu Solar is being led by the Private Infrastructure Development Group (PIDG), through its project development solution, InfraCo, alongside project founder Energywise Equipment (Pvt) Ltd, and Impala Power Company (Impala). The developers joined representatives from Standard Bank South Africa and Stanbic Zimbabwe in Livingstone to celebrate the MLA signing. Members of the Zimbabwean government also joined project stakeholders.

Deputy Minister of Energy and Power Development in Zimbabwe, Hon. Yeukai Simbanegavi MP, said, “I am honoured to be here today to help mark this important milestone in the development of Vungu Solar. Today’s signing marks another significant step towards financial close and demonstrates the potential of standardised project agreements to strengthen investor confidence and unlock international finance. Our expectation is that this model with serve as a benchmark for other IPPs and accelerate investment in Zimbabwe’s power sector. We congratulate Vungu Solar and all partners involved and look forward to the successful implementation of the project.”

The British Ambassador to Zimbabwe, Gill Lever OBE, echoed the Deputy Minister’s sentiments, saying, “It is wonderful to see Vungu Solar reach another important milestone on its journey to delivering clean, reliable power for Zimbabwe. The involvement of Stanbic Bank Zimbabwe and Standard Bank South Africa reflects the strong partnerships that have been built between government, developers and investors to bring this project forward. The UK is proud to support Vungu Solar through PIDG and our broader partnership with Zimbabwe as we work together to unlock investment, strengthen energy security and support sustainable economic growth.”

As the pilot project for the government’s programme designed to attract international financing for the country’s solar sector, Vungu Solar will be among the country’s first internationally project-financed solar independent power producers (IPPs).

Yesterday’s announcement marks a significant milestone for Vungu Solar as the project moves into its financing stage. The news follows the announcement in January 2026 of the signing of a 25-year Power Purchase Agreement (PPA) with the Zimbabwe Electricity Transmission and Distribution Company (ZETDC). Standard Bank South Africa, together with Stanbic Bank, intends to be a lender to the project and will support engagement with Development Finance Institutions and other lenders prior to reaching financial close. The project is intending to reach financial close in 2027.

Sherill Byrne, Head Project Finance, Energy and Infrastructure Finance at Standard Bank said, “We are pleased to support Vungu Solar alongside Stanbic Bank Zimbabwe as the project moves towards financial close. Bringing together Standard Bank’s project finance expertise and Stanbic’s local presence, we look forward to working with the developers and prospective lenders to structure financing for this important project. Vungu’s role in piloting standardised project documentation offers an opportunity to help pave the way for further investment in Zimbabwe’s solar sector”

Culven Chipfumbu, Chief Executive Officer of project founder Energywise Equipment (Pvt) Ltd said, “Witnessed by our peers from across the sector, we are proud to announce the MLA signing and to welcome Standard Bank South Africa and Stanbic Zimbabwe as our MLA for Vungu Solar. Coming in alongside our committed developer team and government partners, their expertise and guidance will drive the financing stage of this important renewable energy project.”

PIDG Regional Business Development Lead for InfraCo, Michiel Oosterhaven added, “Vungu Solar has been developed through a truly collaborative process to date and, with the MLA now in place, we expect the project to move swiftly towards financial close. We are committed to realising the project’s vision of delivering 30MWac of clean power to the national grid to meet the growing energy needs of Zimbabwe’s homes and businesses, whilst piloting standardised documentation to pave the way for future solar developments in Zimbabwe.”

ENDS

Notes for Editor:

As lead developer on the project, PIDG brings its experience of structuring bankable IPPs in frontier markets to the project, as well as its expertise in developing projects to international health, safety, environmental, social, and business integrity standards, and of raising project finance.
The Africa Legal Support Facility (ALSF) has provided assistance to the Government including legal and financial support from Covington & Burling LLP and Manokore Attorneys on the legal aspects, and EY Transactional Advisory Services on the financial aspects.
Zimbabwe has an electrification rate of 62%, with the majority of grid-connected customers being concentrated in urban areas.
Vungu is expected to supply enough electricity to the grid to power 76,000 households.
Despite recent gains in solar capacity, Zimbabwe’s installed power generation is largely reliant upon hydro and coal. Climate change has impacted hydro generation across Zimbabwe in recent years.
InfraCo’s work in Africa is supported by the governments of the United Kingdom, the Netherlands and Switzerland.

Zimbabwe Electricity Transmission and Distribution Company (ZETDC) – a subsidiary of ZESA Holdings. ZETDC is responsible for the transmission of electricity from the power stations, the distribution of electricity as well as its retailing to end users. https://www.zetdc.co.zw/

Zimbabwe Energy Regulatory Authority (ZERA) is a body corporate established in terms of the Energy Regulatory Authority Act [Chapter 13:23] of 2011. It is mandated to regulate the entire energy sector in Zimbabwe in a fair, transparent, efficient, and cost-effective manner for the benefit of the consumers and energy suppliers. https://zera.co.zw

The Private Infrastructure Development Group (PIDG) The Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor which has been mobilising private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and southeast Asia for 25 years. PIDG’s capital mobilising solutions include technical assistance, InfraCo, GuarantCo, the Emerging Africa and Asia Infrastructure Fund (EAAIF), and local credit enhancement facilities. So far, PIDG has committed USD 6.6b, bringing 286 infrastructure projects to financial close, which has mobilised USD 32.7b from the private sector and USD 51.4b overall. The projects supported by PIDG provide an estimated 240 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, and Sweden, and Global Affairs Canada. www.pidg.org

Energywise Equipment Ltd (Energywise) is a developer of on-grid and off-grid solar power plants that enable its customers to generate clean, affordable energy. Energywise is committed to developing reliable, adaptable, and affordable solutions that cut energy costs and is developing a number of projects in the Midlands and Matebeleland provinces of Zimbabwe. www.energywise.co.zw

Impala Power Company Ltd (Impala): Impala Power Company is a Xago Africa project vehicle. Xago Africa is a developer of renewable energy projects and agribusiness ventures intended to support sustainable socio-economic development in Africa by expanding the availability of electric power for households and industry, and by promoting agribusiness ventures that incorporate processing and manufacturing to stimulate value addition and job creation.

African Legal Support Facility (ALSF) is an international organisation hosted by the African Development Bank (AfDB) in Abidjan, Côte d’Ivoire. It was established in 2008 by the AfDB Group, at the request of African countries, and became operational in 2010. The ALSF is dedicated to providing legal advice and technical assistance to African countries in the structuring and negotiation of complex commercial transactions, creditor litigation, and other related sovereign transactions. The ALSF also proposes and develops innovative tools for capacity building and knowledge management. The goal of the ALSF is to remove asymmetric technical capacities and level the field of legal expertise during (i) the negotiations of complex commercial transactions between African Governments and private sector participants and (ii) litigation. The ALSF’s mandate covers the energy, extractive & natural resources, infrastructure and PPP, and sovereign finance sectors. https://www.alsf.int/

Ministry of Energy and Power Development (MOEPD) ensures the provision of adequate and sustainable energy through formulating and implementing effective Policies and Regulatory Frameworks. https://www.zim.gov.zw/index.php/en/my-government/government-ministries/energy-and-power-development

Ministry of Finance, Economic Development, and Investment Promotion formulates, coordinates, and monitors the implementation of national development plans, macro-economic policies, effectively Mobilise, Allocate, Manage and Account for public resources. https://www.zim.gov.zw/index.php/en/my-government/government-ministries/finance-and-economic-development

Reserve Bank of Zimbabwe aims to ensure price and financial stability through prudent, innovative, evidence-based monetary policies that preserve the value of the local currency and promote sustainable and inclusive growth for the prosperity and resilience of Zimbabwe. https://rbz.co.zw

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Lorna McNae, Senior Communications Manager, PIDG, lorna.mcnae@pidg.org