Zimbabwe’s energy developer Centrachine, a subsidiary of African Transmission Corporation (ATC), has signed a direct agreement with ferrochrome producer Afrochine Smelting, unlocking financing for the 115MW Selous Solar PV Project.
The agreement allows Zhejiang Dinson Holding Group, Afrochine’s parent company, to guarantee the company’s electricity payment obligations to CentraChine and its financiers. This was the final requirement needed to complete the project’s financing structure.
The financing package includes a US$87.5 million long-term facility led by the Trade and Development Bank, a US$65 million bridge facility from Sinohydro Leasing International and a US$3 million facility from FBC Bank, underwritten by Old Mutual.
The project is expected to be commissioned in July 2027, ahead of the original October 2027 target, as the Government pushes to accelerate investment in power generation.
ATC head Victor Utedzi says: “Financiers need confidence not only that power will be generated, but that it will be paid for. This agreement supplies a critical additional layer of security and was the remaining piece needed to bring the financing structure together.”
The Selous project has been granted Prescribed Asset Status, allowing pension funds and institutional investors to participate in its financing.
Afrochine is Zimbabwe’s largest ferrochrome producer and one of the country’s biggest industrial electricity consumers. Ferrochrome producers collectively use more than 300MW, and the Government has been pushing them to develop their own power-generation capacity to ease pressure on the national grid.
ATC, which won the Afrochine project contract against 30 other bidders, has also been involved in projects such as the 25MW Nyabira solar plant, built by another subsidiary, Centragrid. It is also developing two solar plants of a combined 36MW for cement producer PPC, and 100MW for the Dinson Iron and Steel plant at Manhize.
Afrochine is part of China’s Tsingshan group, which also owns Dinson Iron and Steel Company.
Also read | Govt tells power-hungry ferrochrome producers: Produce your own electricity, ease pressure on ZESA
