Old Mutual’s interest in renewable energy has been established over a period now, and we continue that commitment. Firstly, within the Old Mutual operations, we seek to uphold responsible business practices, and we are looking at how we can ensure that we are climate-friendly in the ways that we conduct business. We are transitioning our sources of energy to renewable and clean energy.
So, we have invested in sources of renewable energy within the group; solar plants at our head office and other major offices. We can count up to 1.4 megawatts of power deployed within our buildings and offices for the benefit of ourselves as the operators in those premises, or our clients who also occupy that space. And this is really what we are doing to demonstrate that commitment internally.
This is in addition to other initiatives to ensure that we pursue the sustainability agenda strongly.
The second level is in how we are supporting investments in renewable energy. We have invested in hydro plants, including in Manicaland. We have invested in a solar plant in Hwange. We have invested in renewable energy projects in Masvingo, in Matabeleland South, and close to Harare.
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We are counting now up to 43MW over the recent past that we have delivered onto the grid or into microgrids. And we will continue that agenda. We have a pipeline of further projects. We have just added another two to the pipeline.
The other level that I would like to talk about is the role that Old Mutual is playing in pooling resources to deploy into renewable energy infrastructure. An example is the Renewable Energy Fund, which we launched in 2024.
This is a US$100 million fund, in which we have partnered with the government, United Nations agencies, plus private sector investors. Of this fund, US$21 million has been committed so far, with US$10 million of that already allocated. We are mobilising more to grow the fund, while making sure that we deploy the balance of what has been committed.
This is a blended financing structure, in the sense that some of our participants primarily focus on social impacts. The funding emphasises social outcomes alongside financial returns.
We have the government on board, seeking meaningful outcomes in the social impact space. In addition, they’re looking at how best to support private sector investors to participate and benefit from the blended financing rates offered through the fund. Our private sector players are seeking economic returns, while also being conscious about the sustainability impact offered by this fund.
This is one of our top-priority funds as we look ahead over the next few years. If we get it right, it will catalyse the scaling up of the flow of capital into renewable energy initiatives.
You will also see us actively intervening to promote startups within the renewable energy value chain. At our Eight2Five Innovation Hub, we already have participants developing innovative solutions and showcasing their ideas in this space.
We profile their projects and we get them to start to access support in financial resources.
Sam Matsekete is the Group Chief Executive Officer of Old Mutual Zimbabwe
