Zimbabwe unveils US$9,13bn energy investment plan

The government has directed large-scale electricity consumers to construct their own power generation plants within the next two years as part of measures to address Zimbabwe's chronic energy shortages.

Energy and Power Development Minister July Moyo announced the new policy at the Africa Capital Markets Forum in Johannesburg on Wednesday, where he outlined Zimbabwe's energy investment roadmap alongside presentations from Kenya and Ghana.

"To support economic growth, we have created a window requiring large consumers to build their own captive power within two years, whether through solar or thermal solutions," Moyo said.

The directive comes as industries and businesses across the country continue to struggle with erratic power supplies, often forced to operate at night when electricity becomes available.

Moyo said several private sector players have already started developing self-generation facilities, working in tandem with independent power producers (IPPs) to ensure reliable supply.

He also revealed that the government is licensing private energy developers to bring power to 371 unconnected housing developments, popularly known as "dark cities."

"Private players are being licensed to reticulate these areas, build infrastructure, and recover their investment through our prepaid billing system," he said. "Electricity can initially be provided by alternative means while grid expansion follows later."

The minister pointed to successful pilot projects funded by local banks as examples of effective collaboration between government, the private sector, and financial institutions to extend electricity access to underserved communities.

Moyo said Zimbabwe's national energy overhaul would require a total investment of US$9.13 billion, with government seeking at least US$4 billion in support from investors and development partners.

"We invite investors, financiers, and development partners to join us as we light up Zimbabwe, strengthen southern Africa's energy landscape, and create a brighter, sustainable future for all," he said.

The country's energy compact - developed through consultations with over 200 stakeholders including the private sector, government departments, the World Bank, and the African Development Bank - aims to drive sustainable energy generation, grid expansion, and private sector participation over the next decade.

The policy marks a significant shift toward energy decentralization, signaling government's growing reliance on private investment to stabilize and expand Zimbabwe's power sector.