Zimbabwe may be standing on the threshold of a quiet investment revolution—one powered not by mineral wealth or debt-funded infrastructure, but by an emerging financial instrument rapidly transforming global climate markets: carbon credit insurance.
Once viewed as a technical niche product, carbon credit insurance is now gaining recognition as a powerful economic catalyst capable of unlocking foreign direct investment (FDI), de-risking long-term green projects, and positioning countries such as Zimbabwe as credible destinations for climate-aligned capital.
For a country hungry for economic growth, carbon credit insurance is fast emerging as one of Zimbabwe’s strongest levers for unlocking investment, accelerating climate finance, and driving sustainable development.
As global capital shifts aggressively toward climate-aligned assets, experts say Zimbabwe could tap into billions of dollars in new financing if it succeeds in building a credible, risk-mitigated investment environment. Carbon credit insurance—still relatively new locally—is increasingly seen as a critical tool to achieve this.
At the recent Southern Africa Insurance Indaba in Victoria Falls, the Zimbabwe Investment and Development Agency (Zida) underscored the need for market de-risking if Zimbabwe is to attract fresh capital and scale climate investments.
Zida chief executive Tafadzwa Chinamo said growing investor interest suggests the country is sitting on a high-value opportunity that remains largely underexploited.
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“A lot of these investors are coming from other countries. Perhaps they’ve sold this sort of insurance back home, but why not own that here?” he said.
“You could start insuring risks located far from here—covering projects in Zimbabwe, a country investors may not yet fully understand. That, in itself, is an opportunity for the industry.”
Global investors, particularly those operating in mature carbon markets, already understand how carbon credit insurance works and increasingly expect it as standard risk cover when assessing project finance proposals.
For Zimbabwe, Chinamo acknowledged, investment attractiveness has historically been limited. Addressing investor risk perceptions will therefore require coordinated action across government, regulators, insurers, and financiers.
He noted that carbon credit insurance—alongside trade credit insurance—represents one of the highest-potential growth areas for Zimbabwe’s financial sector. Strengthening domestic insurance capacity, he added, could unlock trade, support SMEs, enhance regional value chains, and spur economic growth.
Yet he conceded that carbon credit insurance remains unfamiliar to many local stakeholders.
“This is a buzzword now. If you look at the jurisdictions we engage with, the easiest money to access today is green or climate finance,” Chinamo said.
“But carbon credit insurance still needs to be unpacked and properly understood so that, collectively, we can market it effectively.”
Zida engages with more than 4 000 investors, many of whom come from markets where such insurance products are already mainstream.
Carbon credit insurance protects investors and project developers from risks such as regulatory changes, carbon issuance delays, verification disputes, and project underperformance. For banks and institutional investors, this coverage is increasingly non-negotiable.
Carbon trading expert Kuda Manyanga said the insurance plays a pivotal role in stimulating investment in renewable energy and conservation projects.
“Carbon credit insurance provides a safety net for investors by mitigating risks such as policy shifts, regulatory uncertainty, or project failure,” he said.
“With insurance in place, projects become more attractive to lenders, as risk is transferred to insurers, making financing easier to secure. Insured projects can also achieve better credit ratings, lowering the cost of capital and expanding access to funding.”
He added that de-risking carbon projects can unlock private capital in African markets by reducing uncertainty, boosting investor confidence, and providing clearer exit strategies.
Manyanga pointed to initiatives such as the Africa Energy Guarantee Facility, which aims to mobilise US$1,4 billion in private clean energy investment, and the Green Climate Fund, which leveraged US$60 million in equity to unlock US$1 billion from private investors.
However, he noted that the financing gap remains vast. Developing countries require an estimated US$1,7 trillion annually for renewable energy, yet only US$544 billion was invested globally in 2022.
Development specialist Byron Zamasiya echoed the argument, emphasising carbon credit insurance’s potential to attract FDI.
“Carbon credit insurance can significantly boost FDI by reducing regulatory and political risks that often deter investors, particularly in evolving carbon markets like Zimbabwe’s,” he said.
“It acts as a guarantee for carbon revenue streams, making projects bankable for private equity, climate funds, and development finance institutions—especially under Zimbabwe’s emerging framework through the Zimbabwe Carbon Market Authority (ZiCMA).”
Zamasiya said de-risking through insurance improves access to finance, lowers borrowing costs, and reassures investors amid policy shifts.
“Global cases supported by the Multilateral Investment Guarantee Agency and commercial insurers show how these tools unlock large-scale capital flows into renewable energy, conservation, and land-use projects, positioning countries as credible climate investment destinations,” he added.
He cited African examples such as Howden Group’s warranty and indemnity insurance for 300 000 carbon credits from Ghana’s Mere Plantations project, which unlocked premium credit sales, and Senegal’s Taiba N’Diaye wind farm, which secured more than US$400 million in financing due to robust risk coverage.
Conversely, Zamasiya noted that several African projects have stalled due to inadequate risk mitigation or policy uncertainty. These include the Grand Inga Hydropower Project in the DRC, Ghana’s Nzema Solar initiative, Sudan’s Kajbar Hydropower Project, and Zimbabwe’s Harava Photovoltaic Solar Power Station.
Such cases, he said, demonstrate how weak risk coverage can delay or derail projects that could otherwise unlock tens of billions of dollars in climate investment.
For Zimbabwe, the implications are significant. The country urgently needs long-term capital for electricity generation, water systems, transport, and industrial infrastructure. Once insured, carbon credit projects can become viable, revenue-generating assets suitable for pension funds, development finance institutions, and private equity.
As of February, Zimbabwe had issued 31 293 689 carbon credits from 27 projects, with 8 735 304 credits remaining, according to the American-based Voluntary Registry Offsets Database.
At the current global average price of US$6,53 per credit, the remaining credits represent potential revenue of approximately US$55,46 million.
The opportunity is real, and global capital is actively seeking credible, de-risked climate projects. The challenge now lies in mainstreaming carbon credit insurance within Zimbabwe’s financial ecosystem while building a stable, transparent regulatory environment that reassures investors and unlocks long-term growth.