Western Investors Want Stable Legal And Monetary Policies; EU Tells ZimZam Energy Summit

Potential investors in Zimbabwe and Zambia’s energy sectors from the West are seeking predictability, particularly in legislation, the courts, and monetary policy.

This was said by Jobst von Kirchmann, the European Union Ambassador to Zimbabwe, during his address at the inaugural Zimbabwe-Zambia Energy Projects Summit held in Victoria Falls this week. Said Kirchmann:

Zimbabwe is now running a monetary policy which is a multicurrency policy, but then if someone goes out and says, ‘We should abandon the dollar; we should go back to mono-currency,’ that’s a killer for investment.

President Emmerson Mnangagwa recently suggested that the Zimbabwean dollar (ZiG) become the sole currency by 2026, phasing out the use of the US dollar, which has been in circulation alongside other currencies since 2009.

John Humphrey, the British Trade Commissioner for Africa, also emphasized the need for stability in the country’s currency policy. He said:

When we are in the renewable sector, it’s not just about five or 10 years. Actually, you are looking at a much longer period.

So, in order to be able to make those sorts of investments, you really have to feel like you are operating in a predictable and stable environment.

Money is like water. It goes where it is easy, and if you put something in its way, it just flows somewhere else.

Zimbabwe and Zambia held a summit this week in Victoria Falls to explore ways to attract investment for energy projects and development.

The discussions came amid the worst recorded drought in the region, which is depleting the Kariba Dam reservoir and leading to prolonged power outages.

Officials from both countries acknowledged that their heavy reliance on hydropower makes them vulnerable to such extended electricity shortages, with recent blackouts lasting up to 20 hours.

They say they want to increase investment in wind and solar energy generation.

Vice President Constantino Chiwenga said Zimbabwe and Zambia are well-positioned to benefit from solar and wind power. Said Chiwenga:

In particular, the potential for solar energy is highly promising. Both Zimbabwe and Zambia enjoy abundant sunlight throughout the year. This is the only asset on this Earth we do not pay for. So, let’s use it.

Zimbabwe and Zambia have begun exploring floating solar projects on Lake Kariba, following a severe El Nino-induced drought that has reduced the hydroelectric dam’s water levels to just 2%. The drought has led to prolonged power outages in both countries.

More: Pindula News