Zimbabwe-based ferrochrome manufacturer Afrochine Smelting has secured US$155.5 million in financing to develop a 115-megawatt clean energy plant in Selous, Zimbabwe. The project, initially planned with a capacity of 100 MW, was expanded to 115 MW before reaching financial close. The facility is expected to provide a reliable electricity supply for the company’s industrial operations and strengthen energy security.
The project is being developed in partnership with African Transmission Corporation through its subsidiary, Centrachine. The financing arrangement includes an US$87.5 million long-term loan managed by the Trade and Development Bank, a US$65 million bridge facility provided by Sinohydro Leasing International, and a US$3 million facility backed by Old Mutual through FBC Bank.
The project has also received Prescribed Asset Status from Zimbabwean regulators. This designation allows local pension funds and financial institutions to participate in financing the development, supporting the mobilisation of domestic capital for energy infrastructure.
Zhejiang Dinson Holding Group, the parent company of Afrochine Smelting, has provided a parent company guarantee to support the project. The guarantee assures lenders and the developer that electricity payments will be made on time, helping complete the financing agreement.
The proposed power plant will be located next to Afrochine’s main smelting facilities. Electricity will be delivered directly to the industrial site through a five-kilometre transmission line, reducing dependence on the public electricity grid. Power will be purchased under a 25-year power purchase agreement denominated in US dollars, providing long-term certainty for the project and its electricity supply arrangements.
Yellow River Corporation, a subsidiary of PowerChina, has been appointed to undertake construction work. Centragrid Services will be responsible for the plant’s operations and maintenance after completion. Government officials have encouraged the project participants to accelerate construction, with the commissioning target brought forward to mid-2027.
The development forms part of Zimbabwe’s broader efforts to expand private power generation and improve electricity reliability for energy-intensive industries. The country’s dependence on hydropower makes electricity supplies vulnerable to drought and reduced water availability, which can affect generation levels.
By investing in dedicated power infrastructure, Afrochine aims to secure a more dependable electricity supply for its ferrochrome production activities. The project also highlights the growing role of private investment, long-term financing and industrial power purchase agreements in addressing electricity shortages and supporting economic activity in Zimbabwe.
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