- China to stop financing coal projects in Zimbabwe
- The decision is a cause for concern, says ZESA Chair
In a recent announcement, the Chinese government stated that it would stop funding coal projects in other countries. This decision comes as several coal projects in Zimbabwe may face funding cuts. Some coal projects initially financed by China may face funding cuts with the announcement by the Chinese government.
China is the financier of the $1.5 billion Hwange power station expansion project, which has reached 72% completion. However, with the new announcement, it is unclear if it will continue to receive funding from China. China is also financing other coal-fired thermal plants, including the Bulawayo, Harare and Munyati power stations.
The Chairman of the Zimbabwe Electricity Supply Authority (ZESA), Sydney Gata, has expressed concerns on the recent development” ”The recent developments in coal are a concern,” Gata said, “It’s a sad story for Southern Africa. We were going to benefit from these projects if finance was still available,” he added.
Zimbabwe has an estimated 2 billion tonnes of coal deposits and largely depends on coal for electricity generation.