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Project name Electricity End-Use Infrastructure Development (EEUID)
Country/region Zimbabwe
Duration since 2009
Short Description

Zimbabwe’s Rural Electrification Agency (REA) is promoting productive uses of electricity since its creation in 2002.

Following other initiatives to specifically promote the uptake of irrigation and maize milling, REA launched a revolving fund extending loans for electrical appliances to SMEs in 2009.

Since 2011, this fund is managed by a commercial bank, which helped to improve the selection of viable credit applications and loan recovery rates.

Applicants submit project proposal to one of REA’s eight provincial offices which in turn forwards it to the nearest branch of the bank that manages the revolving fund. The bank is responsible for due diligence as well as credit disbursement and recovery.

The loan conditions are as follows: 10% deposit, 2 years tenure, 7.5% interest p.a., 3 months grace period.

Up to today, the EEUID component of Zimbabwe’s Expanded Rural Electrification Programme (EREP) has financed hundreds of loans for productive end-use equipment. Experience has shown that the number of applications but also the rate of loan recovery is highly dependent on lending conditions.

Implemented by

Rural Electrification Agency

Funded by

Government of Zimbabwe / Rural Electrification Fund

Further Information