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Zimbabwe in US$17bn power investment push
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Zimbabwe has embarked on an ambitious initiative to attract global investment into its energy sector, aiming to mobilise over US$16.8 billion over the next five years to enhance electricity generation capacity and expand power access across the country.
Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube revealed the Government's energy sector investment strategy during the 2025 Spring Meetings of the International Monetary Fund (IMF) and World Bank Group in Washington, United States. Zimbabwe presented these investment opportunities directly to multilateral financiers and private sector investors in a bid to unlock funding for the nation's growing energy needs.
"At the heart of our participation in these meetings is the Energy Compact, where we are engaging with the World Bank, the African Development Bank, and private sector investors to explore the vast opportunities in Zimbabwe's energy sector, from power production to transmission, distribution, and retail," Prof Ncube said. "These value chains present clear investment opportunities, and we are committed to incentivising private sector involvement to drive growth in this sector."
The Government's investment mobilisation plan aims to channel over US$16.8 billion into several critical areas of the energy sector. Of this, approximately US$11.3 billion is earmarked for electricity generation projects. The Government anticipates that around 90% of this financing will come from private sector investors, underlining the crucial role of private capital in achieving the nation's energy goals.
In addition, Zimbabwe is targeting US$2.97 billion to expand grid access, a key component of the strategy designed to bring electricity to underserved areas, especially in rural regions. This portion of the investment will be funded entirely through public sector resources to ensure broader national coverage.
Zimbabwe is also prioritising clean cooking initiatives, with US$791.5 million needed to support the promotion of cleaner energy alternatives, such as solar cookers, to reduce the nation's dependence on firewood and charcoal. Of this, 70% is expected to come from private sector investors, with the remainder supported by the public sector and development partners.
"We are actively encouraging captive power investments, where companies generate their own electricity and are incentivised to feed surplus energy into the national grid," Prof Ncube added. "This model will help alleviate energy shortages and foster a more sustainable energy future for Zimbabwe."
During a separate session at the Spring Meetings, Energy and Power Development Minister July Moyo highlighted some of the major challenges facing Zimbabwe's energy sector, including ageing infrastructure and limited access to finance. To address these issues, Minister Moyo outlined a comprehensive set of reforms designed to accelerate electricity access and promote clean energy solutions.
Key among these reforms is the introduction of cost-reflective tariffs, which will allow the power utility to recover its operational costs, improve its creditworthiness, and strengthen its ability to purchase power from private developers. Minister Moyo also highlighted a government programme to install smart and prepaid metering systems to improve revenue collection efficiency, as well as the introduction of third-party access regulations. These regulations will enable independent power producers to use the national grid on a non-discriminatory basis, allowing them to supply electricity directly to customers.
"The Government has set ambitious targets for the energy sector," Minister Moyo said. "We aim to achieve 100% household electricity access by 2030, leveraging a combination of on-grid, mini-grid, and standalone solar systems. We also plan to increase access to clean cooking solutions from 38.6% to 70%, significantly reducing our reliance on firewood and charcoal."
Additionally, the Government is working towards increasing Zimbabwe's installed generation capacity from the current 2,962 megawatts (MW) to 10,938 MW. The country also plans to boost the contribution of renewable energy to the national grid, increasing from 1,282 MW to 4,438 MW. Of particular note is the intention to expand the share of non-hydro renewable energy in the power mix from 7.8% to 31%, contributing to both energy diversification and climate resilience.
As part of broader structural reforms, the Government is restructuring the national power utility to improve operational efficiencies and service delivery, with an eye on modernising infrastructure to meet future demand.
The Government's drive to mobilise investment in the energy sector is a critical part of its broader economic development agenda, aiming to meet the growing power needs of industries, households, and businesses, while also contributing to sustainable development and climate goals. With strong backing from private sector investors and multilateral institutions, Zimbabwe is positioning itself to transform its energy sector into a major driver of economic growth and development in the region.
Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube revealed the Government's energy sector investment strategy during the 2025 Spring Meetings of the International Monetary Fund (IMF) and World Bank Group in Washington, United States. Zimbabwe presented these investment opportunities directly to multilateral financiers and private sector investors in a bid to unlock funding for the nation's growing energy needs.
"At the heart of our participation in these meetings is the Energy Compact, where we are engaging with the World Bank, the African Development Bank, and private sector investors to explore the vast opportunities in Zimbabwe's energy sector, from power production to transmission, distribution, and retail," Prof Ncube said. "These value chains present clear investment opportunities, and we are committed to incentivising private sector involvement to drive growth in this sector."
The Government's investment mobilisation plan aims to channel over US$16.8 billion into several critical areas of the energy sector. Of this, approximately US$11.3 billion is earmarked for electricity generation projects. The Government anticipates that around 90% of this financing will come from private sector investors, underlining the crucial role of private capital in achieving the nation's energy goals.
In addition, Zimbabwe is targeting US$2.97 billion to expand grid access, a key component of the strategy designed to bring electricity to underserved areas, especially in rural regions. This portion of the investment will be funded entirely through public sector resources to ensure broader national coverage.
Zimbabwe is also prioritising clean cooking initiatives, with US$791.5 million needed to support the promotion of cleaner energy alternatives, such as solar cookers, to reduce the nation's dependence on firewood and charcoal. Of this, 70% is expected to come from private sector investors, with the remainder supported by the public sector and development partners.
"We are actively encouraging captive power investments, where companies generate their own electricity and are incentivised to feed surplus energy into the national grid," Prof Ncube added. "This model will help alleviate energy shortages and foster a more sustainable energy future for Zimbabwe."
During a separate session at the Spring Meetings, Energy and Power Development Minister July Moyo highlighted some of the major challenges facing Zimbabwe's energy sector, including ageing infrastructure and limited access to finance. To address these issues, Minister Moyo outlined a comprehensive set of reforms designed to accelerate electricity access and promote clean energy solutions.
Key among these reforms is the introduction of cost-reflective tariffs, which will allow the power utility to recover its operational costs, improve its creditworthiness, and strengthen its ability to purchase power from private developers. Minister Moyo also highlighted a government programme to install smart and prepaid metering systems to improve revenue collection efficiency, as well as the introduction of third-party access regulations. These regulations will enable independent power producers to use the national grid on a non-discriminatory basis, allowing them to supply electricity directly to customers.
"The Government has set ambitious targets for the energy sector," Minister Moyo said. "We aim to achieve 100% household electricity access by 2030, leveraging a combination of on-grid, mini-grid, and standalone solar systems. We also plan to increase access to clean cooking solutions from 38.6% to 70%, significantly reducing our reliance on firewood and charcoal."
Additionally, the Government is working towards increasing Zimbabwe's installed generation capacity from the current 2,962 megawatts (MW) to 10,938 MW. The country also plans to boost the contribution of renewable energy to the national grid, increasing from 1,282 MW to 4,438 MW. Of particular note is the intention to expand the share of non-hydro renewable energy in the power mix from 7.8% to 31%, contributing to both energy diversification and climate resilience.
As part of broader structural reforms, the Government is restructuring the national power utility to improve operational efficiencies and service delivery, with an eye on modernising infrastructure to meet future demand.
The Government's drive to mobilise investment in the energy sector is a critical part of its broader economic development agenda, aiming to meet the growing power needs of industries, households, and businesses, while also contributing to sustainable development and climate goals. With strong backing from private sector investors and multilateral institutions, Zimbabwe is positioning itself to transform its energy sector into a major driver of economic growth and development in the region.
Source - The Sunday Mail
