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Afrochine Smelting, Zimbabwe’s largest ferrochrome producer and biggest single electricity consumer, has finalised a major financing agreement for its 115MW Selous Solar Project. The agreement was marked by the signing of a Direct Agreement between Afrochine and local developer African Transmission Corporation, through its project company Centrachine.
The project was initially conceived as a 100MW facility, but its capacity was later increased to 115MW as the development moved toward financial close. The expanded project is supported by a financing package of US$155.5 million, up from earlier estimates of between US$120 million and US$125 million.
The disclosed funding package comprises a US$65 million bridge facility from Sinohydro Leasing International, a subsidiary of PowerChina; a US$3 million facility from FBC Bank, underwritten by Old Mutual; and a US$87.5 million long term facility led by the Trade and Development Bank.
Zhejiang Dinson Holding Group has provided a parent company guarantee covering the electricity payments owed by Afrochine to Centrachine and the project’s lenders. African Transmission Corporation described the guarantee as the final component required to bring the financing structure together.
The project has also received Prescribed Asset Status from Zimbabwe’s Insurance and Pensions Commission, allowing local pension funds and institutional investors to participate in its financing.
The Centrachine Solar PV Project will be built adjacent to Afrochine’s ferrochrome smelting facilities in Selous. Electricity will be delivered through a dedicated 5km transmission line, supporting the company’s 24 hour smelting operations under a 25 year US dollar denominated Power Purchase Agreement.
African Transmission Corporation selected the project through a competitive process involving more than 30 local and international bidding consortia. Yellow River Corporation, another PowerChina subsidiary, is responsible for construction, while Centragrid Services will provide operations and maintenance support.
Zimbabwe’s Minister of Energy and Power Development, July Moyo, has urged the project partners to accelerate construction and bring forward commissioning from October 2027 to July 2027.
The project forms part of Zimbabwe’s broader drive to expand privately generated captive power and reduce reliance on the national grid. Government planning has identified potential for 1,500MW of captive generation to help offset weather related hydro power shortfalls and strengthen energy security for energy intensive mining and smelting operations.