Zimbabwe opens electricity sector to private players

Zimbabwe's power generation and distribution sector has received a major boost following Government approval for private players to participate in the retailing and distribution of electricity - a landmark policy shift expected to accelerate the national goal of achieving universal access to electricity by 2030.

Reliable and sufficient power generation remains at the heart of Zimbabwe's industrialisation, economic growth, and social development agenda. Energy powers key sectors such as mining, agriculture, and manufacturing, while also underpinning critical public services like healthcare, education, and water supply - all essential pillars of Vision 2030 and the National Development Strategy 1 (NDS1).

For over a decade, Zimbabwe has battled intermittent power shortages driven by ageing infrastructure, limited generation capacity, and growing demand from an expanding economy. The result has been periodic load-shedding, reduced industrial productivity, and rising business operating costs.

The new policy reform — which opens the retail and distribution space to private sector participation — is expected to decentralise electricity supply, improve operational efficiency, and attract fresh investment to strengthen generation, transmission, and distribution capacity across the country.

Authorities have underscored that the reform is not about competition but about ensuring energy security, reliability, and sustainable economic transformation.

In a notice issued on Thursday, the Zimbabwe Energy Regulatory Authority (Zera) confirmed that Government had approved the participation of private players in electricity retailing and distribution to complement national efforts toward universal access.

"The Government of Zimbabwe has approved the participation of private players in the retailing and distribution of electricity to consumers, to complement ongoing efforts to achieve universal access to electricity by 2030," reads part of the notice.

Zera, in collaboration with the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), has invited public and private stakeholders to participate in this new phase of the electricity market.

The authority explained that the framework, guided by Section 44 of the Electricity Act, aims to attract investment in secondary distribution infrastructure — particularly in underserved and new residential areas — while enhancing efficiency and coverage.

"The move aims to attract investments in electricity secondary distribution infrastructure in terms of Section 44 of the Electricity Act, with a focus on improving efficiency in the supply of electricity to households," Zera said.

Under the new model, licensed private companies will be allowed to distribute and retail electricity, working in partnership with ZETDC to expand access and reliability.

"Private companies will be licensed to distribute and retail electricity in underserved areas, complementing the work of ZETDC," the notice added.

To qualify, applicants must demonstrate both technical expertise and financial capacity to operate within the country's regulatory framework, adhering to established standards and guidelines.

Private distributors will also collaborate with ZETDC in developing key backbone infrastructure such as transmission lines and substations for new residential and commercial developments.

Government expects that liberalising the electricity market will deliver multiple benefits — including improved service delivery, lower operational costs, and greater integration of renewable energy into the national grid.

The reform supports Zimbabwe's Vision 2030, which aims to transform the country into an upper-middle-income economy driven by sustainable industrialisation and innovation. By opening the electricity sector to private players, Zimbabwe joins other regional economies embracing public-private partnerships to meet growing energy demands and promote investment in green energy.

To bolster investor confidence, the Government has introduced fiscal incentives to attract capital into renewable energy projects.

Already, several major corporations have taken the lead by investing in solar power to ensure consistent supply and cost efficiency. Caledonia Mining Corporation, Schweppes Zimbabwe, Zimplats, and Bikita Minerals have all integrated solar energy into their operations.

The telecommunications sector has also joined the clean energy transition. Econet Wireless Zimbabwe, through its subsidiary Distributed Power Africa (DPA), launched a 466kW industrial solar plant at its Willowvale complex in Harare.

Other firms such as Tongaat Hulett, Nhimbe Fresh, and Puma Energy have invested in similar projects, underscoring growing private sector confidence in renewable energy as a sustainable power solution.

The liberalisation of the electricity retail sector is therefore seen as a pivotal step toward achieving universal energy access, driving investment, and positioning Zimbabwe as a regional leader in sustainable energy development.