The African Development Bank, the Development Bank of South Africa, the French Development Agency and Stanbic Bank of Botswana have reportedly pledged to fund the Zizabona interconnector. The agreement, signed and ratified by the four countries in 2008 is worth US$224 million. About US$67 million of equity finance is needed, with US$157 million required for debt financing.
The French Development Agency will provide about US$40million, the Development Bankof South Africa will provide US$50 million and the African Development Bank will meet about 40% of the debt financing.
Consultations with financiers are expected to be conducted in October or December 2012, with intended financial proposals due by March 2013.
When fully operational, the Zizabona will, among other things, make it possible for Namibia to import power directly from Zimbabwe. Currently electricity from the Hwange power station is being routed to Namibia through South Africa.
The project is also expected to help decongest the existing transmission corridor that passes through Zimbabwe.
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