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Zimbabwe turns to Japan for energy investments
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Zimbabwe is exploring investment and technological partnerships with Japanese energy companies and government agencies to tackle one of the country's worst power shortages in decades. Households and businesses currently face up to 18 hours of daily blackouts.
Energy and Power Development Minister July Moyo, part of President Emmerson Mnangagwa's delegation to the Ninth Tokyo International Conference on African Development (TICAD 9), visited major Japanese firms, including Toshiba and Hitachi Energy. The visits focused on advanced power generation and transmission equipment, with the minister pitching investment opportunities in Zimbabwe's energy sector.
"The biggest company we visited was Hitachi Energy, where we saw factories producing transformers, generators, and transmission equipment," Moyo said. "Companies in Japan might want to cooperate with us, as well as smaller solar energy firms. Establishing local manufacturing bases could also lower costs."
Japanese financial institutions, such as the Japan Bank for International Cooperation and JICA, have a history of funding energy projects across Africa, making them key potential partners for Zimbabwe.
Meanwhile, the Coalition for Market and Liberal Solutions (Comaliso) has called for the removal of the 15% value-added tax (VAT) on solar energy products, arguing that it undermines efforts to address the electricity crisis. Over 70% of Zimbabweans live below the poverty datum line, making solar power, already the most viable alternative, unaffordable for many.
"The 15% VAT on solar products is fundamentally counterproductive to national energy security," said Myla Solutions founder Ben Harris. "Removing VAT would immediately reduce system costs by 15%, making solar accessible to thousands more Zimbabweans at the time they need it most."
World Bank assessments estimate Zimbabwe requires at least US$2 billion in immediate investment to bridge the country's energy shortfall.
Energy and Power Development Minister July Moyo, part of President Emmerson Mnangagwa's delegation to the Ninth Tokyo International Conference on African Development (TICAD 9), visited major Japanese firms, including Toshiba and Hitachi Energy. The visits focused on advanced power generation and transmission equipment, with the minister pitching investment opportunities in Zimbabwe's energy sector.
"The biggest company we visited was Hitachi Energy, where we saw factories producing transformers, generators, and transmission equipment," Moyo said. "Companies in Japan might want to cooperate with us, as well as smaller solar energy firms. Establishing local manufacturing bases could also lower costs."
Japanese financial institutions, such as the Japan Bank for International Cooperation and JICA, have a history of funding energy projects across Africa, making them key potential partners for Zimbabwe.
Meanwhile, the Coalition for Market and Liberal Solutions (Comaliso) has called for the removal of the 15% value-added tax (VAT) on solar energy products, arguing that it undermines efforts to address the electricity crisis. Over 70% of Zimbabweans live below the poverty datum line, making solar power, already the most viable alternative, unaffordable for many.
"The 15% VAT on solar products is fundamentally counterproductive to national energy security," said Myla Solutions founder Ben Harris. "Removing VAT would immediately reduce system costs by 15%, making solar accessible to thousands more Zimbabweans at the time they need it most."
World Bank assessments estimate Zimbabwe requires at least US$2 billion in immediate investment to bridge the country's energy shortfall.
Source - newsday
