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Engaging The Diaspora Conference:
Cluster Report Back
Economic Development & Investment
By
Max Gomera and ShamisoMapanga
Outline
• Energy
• ICT
Significant findings and issues
• Zimbabwe has set an ambition of 5% GDP Growth
– Growth areas likely to be mining, tourism agriculture and
manufacturing
– Growth from from at least two areas limited both in terms of
the distributive aspects of the wealth and potential for driving
development.
• Growth is limited by weak energy sector
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National power demand estimated at 2,000 to 3,200MW
Installed Capacity approximately 1,200MW
Available generation capacity approximately 1,000MW
Effective deficit approximately 1,900MW
With refurbishment of Hwange, Munyati, Harare and Kariba,
available generation might reach 1,650MW by 2015
Findings and Issues
• Economy largely dependant on Coal, Hydro and Imports
for energy
– Climate change limits the potential for coal (in terms of
securing investment and pressures on emissions)
– GRID sources have Limited Opportunity to power rural areas
– Economy is not liquid, less money for investment
• Where are the new areas for innovation?
– Renewable energy presents a development opportunity
aimed at creating a new driver for economic growth; new
sources of employment and consistent solutions for the
improvement of environmental quality based on the
recognition of the interdependence of environment and
economy
Why renewable Energy
• Technological advances have made renewable
energy a realistic option
• Price on Carbon making coal a less attractive
investment option in the future
• Imports from neighboring countries uncertain as
they face own internal demands
• Provides an opportunity for increased job
opportunities, wealth and health opportunities
• Diaspora can make a contribution
Recommendation:
Constructing the Agenda…
• Use of Economic Instruments
– Feed In Tariffs for Renewable energy
• Creating a market for renewable energy and increasing the
number of producers Rewarding green production and
creating a green market
– Accessing Global Financing
• Clean Development Mechanism
• Reducing Emissions from Degradation and Deforestation
• Adaptation Funds
– Green Economy Credit Line
• Support to Small and Medium Enterprises from local and
international financiers
• Stimulus money, loan guarantees, grant programs
Constructing the Agenda…
• State programs for sustainable energy use
– Reduced taxes for green technologies
– Develop policies to guide sustainable construction
– Challenge the assumption of connection to ZESA
– Solar Water Heaters?
• Support to local research capacities
– Tech innovation will allow for production cost
reductions and installation cost reductions in the
long run
Kenya – Feed-in Tariffs
Mandator
y Use
Access to
Grid
Set Price
per kWh
Long-term
Power
Purchase
FTI Aspects
FTI Aspects
Expected
Benefits
Job Creation
(200,000 farmers)
Enhancing
competitiveness
(5-6m factories)
Enhancing energy
security (500MW)
Coping with fuel
scarcity and price
Environmental
Integrity
Reducing fuel
dependence
“TRIPLE WIN”
Expected Benefits
+ ten-year power purchase agreement
US Cents 6.0/ kWh
• Facilitate resource mobilization
• Reduce transaction costs
• Encourage private investors
FTI Policy
FTI Policy
Observed
Impacts
35 MW
15 MW(2008)
Observed Impacts on
Mumias Sugar Company
Opportunities and Role for Diaspora
Involvement
• Zimbabwe’s energy investment profile developed
– Definition of Zimbabwe’s investment ‘profile’
– Collate baseline info on energy, assist in developing a long term
investment profile and funding mobilisation
• Assisting to Mobilise Funding for Energy investment
– Most funding now in private hands, and often not publicly
accountable
– Need for new brokering and a new paradigm shift
– Identification of global funding sources and articulation of how to
access them (Clean Tech funds; Foundations; Pvt Sector)
– Defining instruments for Mobilisation of diaspora financial
resources
• Brokering Partnerships
• Research and Development
Recommendations
•
Use of Economic Instruments
– Feed In Tariffs for Renewable energy
•
Creating a market for renewable energy and increasing the number of producers Rewarding green
production and creating a green market
– Accessing Global Financing
•
•
•
Clean Development Mechanism
Reducing Emissions from Degradation and Deforestation
Adaptation Funds
– Green Economy Credit Line
•
•
Stimulus money, loan guarantees, grant programsState programs for sustainable
energy use
–
–
–
–
•
Support to Small and Medium Enterprises from local and international financiers
Reduced taxes for green technologies
Develop policies to guide sustainable construction
Challenge the assumption of connection to ZESA
Solar Water Heaters?
Support to local research capacities
– Tech innovation will allow for production cost reductions and installation cost reductions in
the long run
Summary of Programmes
Priority Areas
Activities
Actors/Partners
Timelines
Outputs
Monitoring
Renewabl
e sources
of energy
PreFeasibility
study
Various
players led
by Erika
monitored
by DFZ
3 Months
ending 15
March 2011
Report with
recommend
ations for
feasibility
study
By Max
Gomera
DFZ
Engaging
NGOs on
funding
greener
energy
Approach
UN GEF and
Cleaner
Energy
Funding
Nokwazi
Moyo and
Ian Makone
1 month
ending 15
Feb 2011
Funds for
feasibility
study
DFZ Board
Facilitate Identify and
Partnershi create
ps
strategic
partnership
Various
participants
1 year
Strategic
Max,
and financial Nokwazi
partnerships
for
identified
Engaging The Diaspora Conference:
Cluster Report Back
Economic Development & Investment
(ICT )
By
Nigel Daura
Significant Findings & Issues Discussed
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ICT does not contribute meaningfully in GDP
Low or no investment in ICT infrastructure in the past 5-10 years
Serious skills flight resulted in skills shortage
Conflict on the boundaries of the ICT
High Internet tariffs
Outdated regulatory framework
Huge power deficit and outages
Lack of Awareness , cyber crime
Erratic mobile line connectivity – 2 to 3 lines per person
Long outstanding requests for landline applications
Lack of Information for investors – Websites presence very low
Significant Findings & Issues Discussed (cont.)
•
•
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•
•
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Min of ICT setup March 2009
ICT Readiness Survey 2006
ICT Policy framework launched 2007
ICT Bill currently being tabled
Computer Society of Zimbabwe for ICT professionals
Computer Suppliers Association of Zimbabwe for ICT players
National Economic Consultative Forum (NECF) ICT Task Force
Postal and Telecommunications Regulatory Authority of Zimbabwe
(POTRAZ) was formed by an Act of Parliament [Chapter 12:05] of
2000 currently residing in the ministry of telecomms
Conclusions
• ICT cross cuts all sectors and is an enabler for economic
development
• The fibre optic backbone is now in place
• We now need to consider projects that will make full use
of the network and contribute to economic development
• An ICT Act of Parliament which resides under one
Ministry
Recommendations
• Development of government information sharing
systems and websites
• Website that will enable us to interact with the Diaspora
and maintain a database of available skills
• DFZ to facilitate the crafting of an ICT policy framework
and best practice
• Raising ICT awareness
• Explore opportunities in the public sector ICT Parastatals
(TelOne and Net One)
Summary of Programmes
Priority Areas
Activities
Actors/Partners
Timelines
Outputs
Monitoring
Increase
ICT
awareness
DFZ ICT
symposium,
PM’s office,
DFZ, CSZ,
Ministry of
ICT
Immediate On-going
A greater
awareness of
the role ICT
plays in
economic
development
PM’s office,
Ministry of
ICT, CSZ
Workshops in
Schools and
government
departments
ICT policy
framework
Engage and
consult with
Diaspora on
policy
formulation
and best
practice
PM’s office,
6 months
DFZ, Ministry
of ICT and
Diaspora, CSZ,
Donors
ICT Bill and
best practice
methodology
PM’s office
Ministry of
ICT, CSZ, DFZ
Information
Sharing
Website and
database
Development
DFZ,
Government
Departments,
Diaspora,
Zinnovation
Databases &
Websites,
knowledge
systems
Ministry of
ICT, CSZ, DFZ,
Zinnovation
3 – 6 months