Zimbabwe Wants to Grant a 5 Year Tax Holiday for Off-Grid Solar Energy Investors

  • In a desperate attempt to attract investment in the solar PV power generation sector, the Zimbabwean government wants to grant a tax holiday for off grid solar energy investors for a period of five years.

During a question and answer session in the Senate in Harare, Zimbabwe’s Minister of Energy, Mr Zhemu Soda, said the government was looking into the possibility of exempting solar energy investors from taxes for a period of five years.

“Whatever they produce in those five years, they will not have to pay taxes to the government. This is done to motivate those who want to invest in solar energy production so that the solar networks can be connected to the national grid,” explained Minister Zhemu Soda.

This new measure will accompany other measures by the Zimbabwean government which includes duty-free import of solar energy equipment already in place. However VAT set at 15%, still applies.

More populist rhetoric from a country in meltdown?

Zimbabwe’s energy sector can only be described as a mess due to corruption, looting and gross mismanagement. The country has an installed capacity of 1,940 MW but actual generation less than half that. The country relies on imported power from South Africa and Mozambique which they consistently default on payment. Read more

Related news: The ugly side of renewable energy development in Zimbabwe

Renewable energy sector investment in Zimbabwe has never gained traction due to programme mismanagement corruption, nepotism and a lack of financial guarantees by national treasury. There are also no legal consequence as the justice system is equally corrupt.

Related news: Zimbabwe’s struggle for renewable energy projects

Author: Bryan Groenendaal

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