Issuance of solar bonds for fund-raising in solar power projects in Zimbabwe

Like most African countries, Zimbabwe is still facing a critical energy shortage, with power generation trailing far behind peak demand. Despite its enormous potential to generate solar power, the total installed solar power capacity remains very low. The primary challenge has always been how to raise the funds necessary for IPPs to establish their power plants. Considering this, this paper proposes the issuance of solar bonds for fund-raising in solar power projects. The solar bonds, being part of the green bonds, are investment securities that assure the proceeds will be solely utilized for the financing of solar power projects. The government can partner with financial institutions in the issuance of these bonds and disburse funds to qualifying projects. The paper also highlights the success of a solar bond which the International Finance Corporation managed to float on Africa; this suggests that Zimbabwe could do similarly in effectively issuing a solar bond. This will help evade the energy crisis facing the country head-on while promoting renewable energy in the country and aiding the revival efforts of the economy.