Rwanda & Zimbabwe agree to partner in energy

Rwanda and Zimbabwe have recently signed a groundbreaking agreement aimed at fostering cooperation in the energy sector. The agreement, which was signed a few months ago, marks a significant milestone in the partnership between Rwanda Energy Group (Render) and Zimbabwe. The collaboration is set to cover various key areas in the energy industry, including energy generation, transmission, distribution, reduction of energy losses, capacity building, and personnel training. The CEO of Render, Ron Ways, highlighted the importance of the partnership and the progress made so far during a recent interview with CNBC Africa. Ron Ways elaborated on the four agreements that have already been signed for implementation as part of the Memorandum of Understanding (MOU) between Zessa, the utility in Zimbabwe, and Rek, the utility in Render. These agreements cover critical areas such as solar power plants, transmission networks, distribution systems, connection to households, smart metering, and the use of drones in the energy sector. Ways expressed his satisfaction with the collaboration and detailed a specific project involving the implementation of streetlights in Harare, the capital city of Zimbabwe by a team from Render. He also highlighted the exchange of transformers between the two countries as a key aspect of the partnership, emphasizing the mutual benefits that both sides are reaping from the collaboration. When asked about the learning opportunities for Render from the energy space in Zimbabwe, Ways noted that Zimbabwe's energy industry is more developed in certain aspects, such as transformer production. This presents an excellent opportunity for Render to enhance its operations and benefit from Zimbabwe's expertise. He emphasized the value of knowledge exchange between the two utilities, stating that there are always areas to learn from one another in terms of maintenance, development processes, and operational strategies. Ways underscored the weekly meetings and conference calls held to ensure effective cooperation and goal achievement. In terms of investment requirements for the partnership's success, Ways mentioned that the cooperation encompasses various areas with a total budget approaching one billion dollars. He highlighted the collaboration with government institutions and companies to secure the necessary funding for the projects. Ways indicated that the focus is on private sector investments and partnerships with different banks to finance the initiatives. He emphasized the importance of technical knowledge and financial resources in ensuring the success of the collaboration. Eugene Boenshu, head of business development and project coordination at EPC Africa, also shared insights on the company's plans to expand operations to Zimbabwe with a focus on solar projects. Boenshu outlined their successful ventures in hydro power in Rwanda and expressed their intention to replicate the same success in Zimbabwe through solar energy projects. He highlighted the pilot projects in both countries, emphasizing their contributions to the national grids and the plans for future expansions. Boenshu stressed the significance of partnerships to leverage expertise and resources in advancing the energy sector in Zimbabwe. Regarding the financial aspects of the projects in Zimbabwe, Boenshu explained the negotiation of a power purchase agreement with Azesa, the Zimbabwe Electricity Authority. He acknowledged the substantial investments required for solar energy projects but emphasized the potential returns and profitability associated with such ventures. Boenshu mentioned the ongoing discussions with authorities to address challenges such as licensing and financing, underscoring the progress made in overcoming these obstacles. Despite some challenges, including licensing processes and financing requirements, both Render and EPC Africa are optimistic about the prospects of the partnership and the significant impact it could have on the energy sector in Africa. The CEOs reiterated the importance of African investors driving development within the continent and creating sustainable solutions tailored to the region's needs. By joining forces and pooling resources, African businesses aim to foster innovation and progress within the energy industry, ultimately contributing to the continent's growth and self-reliance.