Source: Afreximbank backs Lake Kariba floating solar project – herald
Business Reporter
Businessman Eddie Cross’s firm, Green Hybrid Power Private Limited, has signed a multimillion-dollar deal that paves the way for a major floating solar project on Lake Kariba, the world’s largest man-made water body.
Once completed, the investment will go a long way in augmenting Zimbabwe’s domestic power production and bridging the deficit.
Zimbabwe’s peak electricity demand is currently around 2 200 megawatts, but generation capacity is often lower, fluctuating between 1 000 MW and 1 400 MW. This means there is a significant supply gap, and the country often relies on electricity imports to meet demand or bridge the deficit.
Green Hybrid Power’s funding agreement, a heads of terms for a US$4, 4 million project preparation facility, was extended by Afreximbank to Green Hybrid Power.
The facility is specifically designated to fund crucial preparatory work. The funds will be deployed towards bankability and feasibility studies, as well as financing of transaction advisors, for a planned 1-gigawatt (GW) hybrid floating solar photovoltaic power system situated on Lake Kariba in Zimbabwe.
The ambitious project is structured for implementation in two phases. The initial pilot phase targets a generation capacity of 500 MW.
The entire output from this phase will be sold to the Intensive Energy Users Group (IEUG), a consortium of prominent industrial and mining energy users in Zimbabwe.
This will be underpinned by a 20-year “take-or-pay” power purchase agreement featuring a cost-reflective tariff.
The project is anticipated to deliver affordable and reliable power, supporting value addition and beneficiation of Zimbabwe’s minerals. This, in turn, is expected to boost the country’s foreign exchange earnings.
This project preparation facility represents a vital first step, unlocking an estimated investment of US$350 million for the full development.
The agreement was formalised at the 32nd Annual Meetings of Afreximbank (AAM2025) held last month in Nigeria.
Mrs Kanayo Awani, executive vice president for Intra-African Trade and Export Development, signed on behalf of Afreximbank, while Mr Cross, Green Hybrid Power chairman, signed for Green Hybrid Power Private Limited.
This deal formed part of a broader series of project preparation agreements signed by Afreximbank during 2025. The bank inked four such transactions with various entities, collectively expected to unlock investments valued at approximately US$1 billion.
Zimbabwe has been actively issuing renewable energy licenses, particularly to Independent Power Producers (IPPs), as part of a broader effort to diversify its energy sources and increase domestic power generation.
These licenses are granted by the Zimbabwe Energy Regulatory Authority (ZERA) and often involve a standardized project support agreement to ensure bankability of the investments
ZERA has reportedly issued more than 171 IPP licenses to date.
Zimbabwe is experiencing a significant electricity shortage, impacting daily life and the economy. This shortage is due to a combination of factors, including low water levels at the Kariba Dam (a major hydroelectric source) caused by drought, aging infrastructure, and financial constraints hindering maintenance and investment. The situation has led to frequent and prolonged power outages (load shedding), affecting businesses, households and essential services.
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