KEY POINTS
- Zimbabwe seeks U.S. investment in coal to expand energy production.
- Energy Minister Moyo guarantees a secure investment climate.
- U.S. energy policy shift opens new opportunities for fossil fuels.
In light of Zimbabwe’s enormous coal reserves and welcoming investment environment, Energy Minister July Moyo has encouraged the US to permit its private sector to invest in the country’s coal industry. His request comes after the United States changed its coal-use energy strategy.
Zimbabwe seeks U.S. investment in coal to boost energy sector
Formerly an advocate of reducing reliance on fossil fuels, the United States withdrew from the Paris Agreement under President Donald Trump and is currently looking for other coal sources.
During his speech at the recent Powering Africa Summit in Washington, Moyo gave American investors confidence that their money would be safeguarded.
Moyo added, “We are pleading with the United States to allow your private sector to invest directly in Zimbabwe.” “Because their investment will be guaranteed, we have created an environment where they will earn money.”
U.S. shifts policy, reopens door for fossil fuel investments
According to New Zimbabawe, global energy demands that surpass climate concerns are the driving force behind the policy change, according to U.S. Energy Secretary Chris Wright. He admitted that previous prohibitions on fossil fuels have impeded Africa’s economic development.
“We would like to collaborate with Africa on energy infrastructure, capital investment, and technology,” Wright stated. “We will work with you to make it happen; you decide what works for your people.”
Moyo, who was joined by Finance Minister Mthuli Ncube, stated that Zimbabwe welcomes U.S. investment in coalbed methane gas extraction, which is plentiful in Hwange and Chiredzi, as well as in power generation.
“We need fertilizers because we are an agricultural nation,” Moyo stated. “Instead of importing fertilizers, we might create our own by investing in coalbed methane gas. That would be a wise investment for a country that places a high value on agriculture.
For over twenty years, Zimbabwe and the United States have maintained a tense relationship. Even if the United States has made some investments there, they are still small in comparison to countries like South Africa, which have kept stronger economic relations with Washington.
