UNCDF in Zimbabwe
East and Southern Africa and the Arab States Region
Loans
Our work
The United Nations Capital Development Fund (UNCDF), in close collaboration with the Government of Zimbabwe and its development partners, is helping to drive inclusive economic growth by attracting and enabling investment in renewable energy systems across the country. While Zimbabwe has strong policy commitments to renewable energy, national electrification stands at approximately 40 percent and just 16 percent in rural areas, leaving nearly half of the population without reliable access to electricity.
UNCDF is addressing this systemic market challenge by making it easier and less risky to invest in small and early-stage renewable energy projects, especially those that are often ignored by traditional financiers. It does this by combining concessional capital with hands-on business support and market system development. This approach helps build a viable pipeline of investment-ready renewable energy projects, supports the growth of local energy markets, and attracts more private sector investment.
These interventions prioritise youth- and women-led enterprises and support critical public infrastructure such as hospitals, schools, and water systems, ensuring that energy access delivers broader development outcomes, including job creation, improved service delivery, reduced emissions, and enhanced resilience in rural and peri-urban communities.
Across its renewable energy work in Zimbabwe, UNCDF is deploying concessional capital, blended finance instruments, and enterprise incubation support to derisk high impact investments, validate new business models, and unlock future capital flows. By going first and aggregating smaller transactions, UNCDF is helping to build a renewable energy market that can grow and deliver jobs, resilience, and long-term impact.
Building a distributed renewable energy market
Launched in September 2024, the Zimbabwe Renewable Energy Fund (REF Zimbabwe) is the country’s first dedicated renewable energy fund, established with $8 million in concessional capital from the UN Joint SDG Fund, deployed through UNCDF’s financial instruments. The Fund is implemented in collaboration with UNDP, UNESCO, UN Women, and private sector partner Old Mutual, which has committed an additional $8 million, bringing the initial fund size to $16 million.
REF Zimbabwe deploys blended finance instruments including concessional loans, blended equity–debt structures, and lease‑to‑own models to finance small-scale, decentralised renewable energy projects that are high risk or early stage. Based on soft commitments from pension funds, commercial banks, and private investors, the Fund is expected to achieve leverage exceeding 3.5x by end‑2025, grow to $30 million by 2025, and reach $50 million by 2026. The two approved transactions outlined below demonstrate the Fund’s ability to structure commercially viable deals that deliver development impact.
Aerial view of Mater Dei Hospital complex in Bulawayo, Zimbabwe, highlighting the scale of solar infrastructure supporting improved access to quality healthcare services and resilient social systems. Photo: UNDP.
Photo: Mater Dei Hospital.
Securing health services through renewable energy
Through REF Zimbabwe an $810,000 early-stage, high-risk investment, structured through a tailored loan, was approved to enable Mater Dei Hospital in Bulawayo to transition to solar power. The investment financed the installation of a 720‑kilowatt solar plant, generating more than 1.3 million kilowatt hours of clean electricity annually.
The project reduces carbon emissions by approximately 22,000 tonnes per year, lowers operating costs, and safeguards critical health services against power disruptions. Energy cost savings are supporting the retention of over 300 hospital staff, more than 70 percent of whom are women, including over 90 percent in leadership positions.
Beyond hospital operations, the investment strengthens community health outreach, including vaccine delivery, cancer screenings, and affordable healthcare services across Matabeleland.
Scaling community‑owned clean energy solutions
REF Zimbabwe has also approved a $6 million investment to develop a 10‑megawatt solar power plant in Guruve District. Structured as a five‑year loan facility, the project will generate approximately 22,000 megawatt hours of clean electricity annually, reduce electricity imports by more than $2 million per year, and cut an estimated 24,000 tonnes of carbon emissions annually.
The project includes the deployment of standalone solar systems for Makume Clinic and Museka Primary School, extending clean energy access to essential public services. Construction is expected to create 40 local jobs, with 15 long‑term positions retained for operations and maintenance.
Importantly, the Community Share Ownership Trust (CSOT) holds a 3 percent equity stake, ensuring that dividends are reinvested in local development priorities such as irrigation, healthcare, education, and rural enterprise development.
Solar panels at the 10‑megawatt solar power plant supported by REF Zimbabwe in Guruve District, Zimbabwe. Photo: UNDP.
An aerial view of the REF Zimbabwe–supported solar power plant under development in Guruve District, Zimbabwe. Photo: UNDP.
Latest news and stories
Our partners
UNCDF’s work in Zimbabwe is made possible through collaboration with the Government of Zimbabwe, UN Joint SDG Fund, Old Mutual Investment Group Zimbabwe, UNDP, UNESCO, UN Women, private investors, pension funds, and commercial banks supporting renewable energy development.
Documents
This section brings together key documents related to UNCDF’s work in the country. It includes a curated selection of publications, papers, and reports that reflect the scope of engagement at country level, from programme design to implementation and outcomes.
These documents offer additional context on how initiatives are developed and delivered, and how partnerships contribute to advancing national priorities. They are intended to support transparency, facilitate knowledge sharing and serve as a practical resource for partners, stakeholders and others seeking a deeper understanding of UNCDF’s work.
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Contact us
For inquiries about UNCDF’s work in Zimbabwe, including partnerships and investment opportunities, please contact: esaa.region@uncdf.org.
