eBusiness Weekly
Jennifer Mufamba
The United Nations Development Programme (UNDP) is working with the Government of Zimbabwe to ensure that the Infrastructure Development Bank of Zimbabwe is accredited by the Green Climate Fund in order to access funding from the institution.
This was said by Jeremiah Mushosho, Programme Specialist Environment, Climate and Renewables at the UNDP’s local office.
Speaking at the Financing Climate Change Adaptation Conference hosted by Business Weekly in partnership with Financial Markets Indaba and the Institute of Chartered Accountants of Zimbabwe last week, Mushosho revealed that the UNDP is assisting the Ministry of Environment, Climate Change, Tourism and Hospitality Industry to get IDBZ accredited by the Green Climate Fund, which is one of the biggest climate financing institutions in the world.
Once accredited, IDBZ would be able to request and access funds for renewable energy and infrastructure development projects, Mushosho said.
“As the United Nations we are currently working with the Ministry of Environment (Climate Change, Tourism and Hospitality Industry) to support, for example, the Infrastructure Development Bank of Zimbabwe (IDBZ), to be accredited by the Green Climate Fund.”
Mushosho said once IDBZ is accredited it will be able to request for funding from the Green Climate Fund in form of different instruments such as concessional loans, equities, soft loans, and grants.
He added that accreditation provides the country with the ability to receive climate funds that will help fund both climate change adaptation and mitigation, infrastructure, the environment, renewable energy, and industry.
He said although the process may take two to three years to be successful, once an entity is accredited, it will receive millions and distribute to qualifying players.
He also said that climate finance facility which is being established by IDBZ provides the opportunity for private players or companies to access funding for infrastructure.
He said there is need for more such institutions in the country and his organization is inviting commercial banks to access funding from the Green Climate Fund.
He said there is already a fund valued at US$45 million which is available for equity and debt.
“This is an opportunity for developers who are going to develop renewable energy infrastructure to come and understand how that can be accessed.
He revealed as part of the package, Old Mutual had already put US$10 million on the table while Government had weighed in with US$1 million in addition to the over US$20 million from the UNDP.
The renewable energy fund will be operated through CABS, Mushosho revealed.
