Afreximbank powers Zesa with US$210m facility

Zimbabwe's power utility, Zesa Holdings, has secured a US$210 million financing facility from Afreximbank, aimed at strengthening the country's electricity infrastructure and importing additional power. The agreement, concluded on the sidelines of IATF2025, marks the largest funding secured by any Zimbabwean firm at Africa's largest trade fair and reflects Afreximbank's continued confidence in local enterprises despite economic challenges.

Under the facility, US$50 million will be allocated to import electricity from Mozambique's Hidroeléctrica de Cahora Bassa (HCB), according to Fredy Mazana, finance director for the Zimbabwe Electricity Transmission and Distribution Company. Another US$50 million will be used to upgrade Zesa's transmission and distribution networks.

Mazana said the funding would also cover the purchase of materials to manufacture transformers, supplemented by supplies from private vendors. Part of the resources will accelerate the smart metering project, focusing on large-scale users.

"We are going to implement the metered management system, converting post-paid meters into smart meters," Mazana explained. "We have a platform that will house a wallet to switch off meters remotely when power is exhausted."

The facility will also allow Zesa to replace vandalised transformers and cables, a persistent issue that has left many customers without electricity despite stiff penalties for offenders. The power utility plans to upgrade equipment to detect and isolate faults more efficiently.

"Currently, system controllers cannot immediately identify areas with faults, which delays restoration. The Scada [Supervisory Control and Data Acquisition] system will allow us to pinpoint problem areas quickly," Mazana said.

The Afreximbank facility is expected to significantly improve the reliability of Zimbabwe's electricity supply while advancing modernization projects such as smart metering and enhanced fault detection systems.