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Five investors have expressed interest in the ZiZaBoNa project, which will consist of an electricity transmission interconnector that links Zimbabwe, Zambia, Botswana and Namibia
The potential investors, the African Development Bank (AfDB), Development Bank of Southern Africa (DBSA), European Investment Bank (EIB), French Development Agency and Stanbic Botswana, have pledged more than US$160 million towards the project.
The transmission interconnector will have the capacity to increase power trading among the participating countries, as well as help decongest the existing central transmission corridor that passes through Zimbabwe.
The total funding requirement for the project has been estimated to be $223 million, comprising $67 million equity and $156 million debt financing.
DBSA has indicated that it was willing to contribute $50 million over a 17-year period.
The French Development Agency has pledged to commit between $30 million and $50 million, while the AfDB said it was prepared to pick up 40 per cent of the debt financing required.
Stanbic Botswana also said that it was ready to invest in the project. The potential investors disclosed their strong interest in the ZiZaBoNa project at a recent investor’s roundtable held in Swakopmund, Namibia.
Speaking at the meeting, Namibian Prime Minister, Nahas Angula said the ZiZaBoNa project deserved all the support as it was “an example of regional cooperation and integration, and how strong regional cooperation can be”.
Southern African Development Community (SADC) deputy executive secretary responsible for regional integration, João Caholo said that regional ministers for infrastructure have already identified the ZiZaBoNa project as one of the major priorities for the SADC infrastructure development master plan.
The master plan, which will guide development in key infrastructure in southern Africa, was expected to be approved by the SADC heads of state and government during their annual summit meeting in Maputo, Mozambique, on 17-18 August.