Old Mutual Zimbabwe invests in solar power projects
HARARE, Old Mutual intends to construct solar power projects with capacity to generate at least 50 megawatts. The projects will entail the construction of two solar power plants in Gwanda and Chipinge,
Old Mutual chief investment officer (Alternative investments) Benjamin Sithole said yesterday.
He said some solar panels will be laid on the rooftops of its properties countrywide. Old Mutual, a diversified financial services group, has the biggest property portfolio in the country.
“It is a project at a very advanced stage and we should be signing some contracts with technical partners before end of this year,” he told delegates at roundtable event in Victoria Falls, without disclosing the amounts involved in the project.
Recently, the insurance giant 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.
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.
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.
The Herald/ Insurance24
