Illustration of energy access challenges BOX 3 Power outages in Zimbabwe, which can last up to 18 hours at a stretch, have severely affected the mining sector.16 Some renewable energy projects, such as the Gwanda solar project in Zimbabwe, have stalled for 10 years.17 Category Key challenges Power generation, transmission and distribution –Bankrupt utilities can cause frequent power outages –Insufficient tariffs can hinder utilities’ abilities to cover costs, invest in generation and maintain infrastructure –Cross-border grid limitations can make it difficult to share excess power –Lack of transmission lines makes it difficult to carry power from generation sites to mines, smelters and processing facilities Fuel mix (percentage share of renewables) –Heavy reliance on coal persists despite major untapped solar and wind potential –Remote mineral deposits and unreliable power grids drive reliance on diesel generators and hydropower, limiting renewable integration Just transition and ESG opportunity –Focusing on ESG compliance can help ensure local jobs, community benefits and ESG safeguards, which can de-risk projects from a reputational standpoint –Lack of net-zero strategies in most SAR countries makes ESG enforcement difficult –Underdevelopment of renewable energy sources hampers decarbonization, affecting alignment with ESG- focused trade partners –Rising compliance costs must be factored into early project planning (e.g. Environmental Impact Assessments,18 emissions controls, waste management and water treatment)Without access to reliable energy, the viability of projects remains questionable and can deter investors. ESG standards play a key role in promoting responsible development, and in some cases, specific criteria – such as emissions thresholds or supply chain traceability – may influence the availability or structure of financing. Energy access 3 Securing Minerals for the Energy Transition: Finance for Southern Africa 13

Securing Minerals for the Energy Transition 2025