Zimbabwe, Mozambique sign landmark energy deal

Zimbabwe and Mozambique have signed a landmark agreement to deepen cooperation in the energy sector, a development poised to significantly improve energy security and infrastructure across Southern Africa.

The Memorandum of Understanding (MoU) was signed yesterday in Maputo by Zimbabwe's Minister of Energy and Power Development, July Moyo, and his Mozambican counterpart, Estêvo Pale. The deal will see Zimbabwe increasing its fuel imports from Mozambique through the pipeline from 3 billion litres to 5 billion litres annually.

Described by officials as a “historic moment," the agreement opens the door for collaboration in electricity generation and trade, petroleum logistics, renewable energy, and natural gas investment.

“Our technical teams have worked tirelessly to ensure this partnership explores every possible area of energy collaboration. This MoU is not just a piece of paper - it is a pathway to real, transformative development," said Minister Moyo at the signing ceremony.

Mozambican Energy Minister Pale echoed similar sentiments, emphasizing the broader impact of the partnership on the region's economic landscape.

“This is not just about power generation. It is about empowering our people, strengthening our economies, and creating a sustainable energy future together," said Minister Pale.

The MoU lays the foundation for joint projects in biofuels, cross-border transmission infrastructure, petroleum product trade, and power sector investment, leveraging the strong historical and economic ties between the two nations.

Mozambique is already a key energy partner for Zimbabwe. In 2023, Zimbabwe imported US$69.2 million worth of electricity from its eastern neighbor, making Mozambique the second-largest electricity supplier after South Africa.

Zimbabwe's total imports from Mozambique last year reached US$403.95 million, with US$74.95 million attributed to electrical energy supplied mainly by Electricidade de Moçambique (EDM) and Hidroeléctrica de Cabora Bassa.

Energy analysts say the deal is a timely response to Southern Africa's growing energy demand and infrastructure gaps, and could serve as a blueprint for regional cooperation.

If successfully implemented, the Zimbabwe-Mozambique energy alliance could attract further investment, support sustainable development goals, and provide a buffer against energy crises exacerbated by droughts and geopolitical instability.

The agreement was signed during the Mozambique Mining and Energy Conference and Exhibition, a two-day private sector-led event in Maputo attended by energy and mining stakeholders from across the region, including Malawi. The event was officially opened by Mozambican President Daniel Chapo, who assumed office in January this year.

Zimbabwe and Mozambique share deep historical bonds, forged during the liberation struggle. In a notable gesture of solidarity, Maputo suspended its independence celebrations in 1975 to host Zimbabwean freedom fighters. These ties continue to flourish through economic and diplomatic exchanges.

Just last month, a large Mozambican business delegation attended the 65th Zimbabwe International Trade Fair (ZITF) in Bulawayo, where President Chapo was the guest of honour - underlining the strength of bilateral relations.

As both countries look to the future, the energy MoU represents more than a technical accord - it signals a shared commitment to sustainable development, regional integration, and mutual prosperity.

Analysts and industry leaders will be watching closely to see how swiftly the agreements are translated into action and how effectively they reshape the regional energy landscape.