Mutapa, Jindal Steel seal US$455m deal

The Mutapa Investment Fund (MIF) has finalized a $455 million concession agreement with Indian conglomerate Jindal Steel and Power Company for the rehabilitation of Units 1 to 6 at Hwange Thermal Power Station, Zimbabwe's largest coal-fired power plant.

Structured as a public-private partnership, the agreement grants Jindal the responsibility to finance, operate, and rehabilitate the six thermal units over a 15-year period. At the end of this concession, control of the units will revert to the Zimbabwe Power Company (ZPC), a subsidiary of ZESA Holdings now overseen by the Mutapa Fund.

According to Mutapa officials, Jindal will invest its own capital for the rehabilitation works and recoup the investment through electricity sales during the concession term. The deal transfers both operational and financial risk to the private investor while ensuring long-term benefits for Zimbabwe's power sector.

Mutapa's Chief Investment Officer, Simba Chinyemba, confirmed that Cabinet had approved the agreement, describing the project as "a critical intervention to stabilise Zimbabwe's electricity supply."

"We have signed a new agreement, now approved by Cabinet, which will improve the energy situation in this country. It is a $455 million agreement for the rehabilitation of Units 1 to 6 within one year with Jindal," Chinyemba said.

Zimbabwe continues to face a chronic electricity shortage, with frequent blackouts affecting productivity across key industries. Many businesses have resorted to costly diesel generators or solar power systems, raising operational expenses amid fluctuating fuel prices and unreliable grid supply.

Commissioned over three decades ago, Hwange Thermal Power Station has suffered a sharp decline in output due to aging infrastructure, with many units operating below capacity or offline. Energy experts have long emphasized the urgent need for rehabilitation to extend the plant's operational life.

This new deal follows an earlier $800 million repowering agreement between ZESA and Jindal, which aimed to increase Hwange's capacity from 420 megawatts (MW) to 900MW and extend its lifespan by up to 20 years. However, that project encountered delays and was never fully executed.

Zimbabwe's peak electricity demand currently stands at around 1,800MW, while domestic generation averages roughly 1,300MW. The shortfall forces reliance on expensive power imports from regional suppliers including Mozambique's EDM, Zambia's ZESCO, and South Africa's Eskom.

The agreement with Jindal is expected to restore Hwange's generating capacity and reduce dependence on costly power imports, alleviating pressure on Zimbabwe's foreign currency reserves.

The Mutapa Investment Fund manages 66 state-owned enterprises across sectors such as energy, mining, agriculture, telecommunications, transport, financial services, and real estate. Since taking control of several parastatals, the Fund has prioritized commercial sustainability, investment partnerships, and economic recovery.

Chinyemba hailed the Hwange rehabilitation as "a major milestone for the Fund in unlocking value through strategic partnerships," signalling renewed hope for Zimbabwe's power sector and broader economic stability.