ICBC to stop funding RioZim’s Sengwa project

World’s largest bank, the Industrial and Commercial Bank of China (ICBC) will stop funding RioZim’s coal project at Sengwa after pressures from the civic society.

ICBC Bank of China have led in coal investments in Africa and among them was the Sengwa project of RioZim.

Rio Energy, a unit of RioZim, last year announced it had reached an agreement with China Gezhouba Group Corporation (CGGC) to build the long-delayed power plant for US$3 billion.

Environmental activist groups that have been lobbying ICBC to cancel the project funding claim the bank has committed not to fund the project.

In a communique following the postponement of a meeting by Affected Communities of the Industrial and Commercial Bank of China ICBC’s Coal Finance, Go Clean said it had recorded marked progress in negotiations with the bank.

“ICBC also confirmed that they will not fund the Lamu Coal Project in Kenya as well as the Sengwa Coal Project in Zimbabwe,”.

“It hasn’t been an easy decision. But in order to respect the communities affected by coal financing, we now see that holding the gathering at this point would prevent us from making key progress on getting ICBC to rule out coal,” said Go Clean.

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