The effort by RioZim Ltd, one of Zimbabwe's biggest mining and energy companies, reflects how China's recent U-turn on foreign coal financing is forcing developing nations across Africa and Asia to rethink their energy plans. China, which had been a top funder of coal power projects around the globe, announced in September it would not build new coal projects abroad as part of efforts to curb future carbon emissions.
RioZim's energy division, Rio Energy, had been hoping for funding for the planned plant and associated coal mine from Chinese banks Industrial and Commercial Bank of China and China Minsheng Banking Corporation Ltd. ICBC told representatives of environmental non-governmental organisations in a June 2021 meeting that the bank would no longer finance the Sengwa project, according to two people who attended the meeting.
China's foreign ministry didn't respond to questions about the status of the funding of the Sengwa and Lusulu projects. But it said Beijing will support developing countries in shifting to greener energy. In Zimbabwe, less than half the population has access to electricity. The country has been betting on coal-fired power to address chronic electricity shortages and create jobs.
Minsheng Bank also provided a non-binding commitment to RioZim to fund a second phase of the Sengwa project, according to Rio Energy and an August 2020 letter of interest from Minsheng Bank that Reuters reviewed. The pledge expired in February 2021, according to the letter.
This entitlement attitude runs the whole length of this continent you do not except other countries to hand out cash in the first place.