Insurer Old Mutual commission 1.6 MW mini-hydro power plant
Insurance24 Reporter
HARARE, Financial services group and insurance giant Old Mutual Zimbabwe has commissioned its 1.6 MW mini-hydro power plant in Manicaland which was constructed at an investment of $5 mln.
The Group has had several investments in the various sectors of the economy as part of diversification as a financial services group.
Insurance however continues to anchor the Group and during the half year period ended 30 June 2017; Gross Premium Written for the group’s insurance business was 2% lower at $100.8 mln, with non-life sales increasing 3% to $153.5 mln. Life Sales at $10.4mln were 5% below prior year.
Meanwhile, at the plant commissioning in Chipinge yesterday, Chief executive officer Jonas Mushosho said the investment solidify the Group’s commitment to invest in the country’s infrastructure development projects.
The project has a return rate of 17% with a 20 year power purchase agreement with the Zimbabwe Power Company for 20 years at a cost of 15.44 cents, but is subject to review between the two parties.
Finance Minister Patrick Chinamasa who officially commissioned the mini-hydro plant commended Old Mutual for supporting government infrastructure development.
“There are various investments incentives that can be given to investors in strategic sectors such as energy. These include tax holidays, national project status, exemption from payment of withholding tax and cost effective tariffs,” he said.
He added that as economy grows, demand for power increases, there is therefore need for investment in energy sector.
He said with regards to Old Mutual, government is aware of the Group’s investments in properties, private and listed companies as well as housing among others.
Other projects currently being financed by Old Mutual include SME Centre which is now over 50% complete and is targeted for completion during the second half of 2018.
