State backs Vungu Solar with a guarantee

Government cash backup shores up a big solar deal and eases investor jitters over getting paid.

Vungu Solar Project

• Authorities issued a payment guarantee for the 30MW scheme.
• Vungu Solar signed its 25-year pact with ZETDC in January.
• Backup kicks in if the utility misses any obligations.
• Move supports a larger 1000MW push for independent producers.

Investor safeguards

• The package delivers cost-reflective rates plus profit repatriation.
• The plan first surfaced back in 2022 to attract more IPPs.
• General Notice 338 of 2026 spells out the Finance Minister's action.
• Guarantee covers the full purchase price under the support pact.