400 000 houses to get private sector electricity connection

At least 400 000 houses in urban areas and growth points across Zimbabwe are set to be connected to the national power grid under a private sector-led electricity distribution and retail initiative, Energy and Power Development Minister July Moyo has revealed.

The landmark programme follows the Government's recent approval for private companies to participate in electricity distribution and retail, a reform expected to ease pressure on the national power utility (ZESA) and significantly improve service delivery.

The phased rollout will initially target settlements such as Eyecourt, Retreat, Caledonia, and Hopely in Harare, Cowdray Park in Bulawayo, as well as Karoi, Mutare, and Masvingo, before expanding nationwide.

Minister Moyo described the move as a key milestone in the liberalisation of Zimbabwe's energy sector, opening the door to private investment, improved efficiency, and enhanced reliability of electricity supply.

"We presented a paper to Cabinet which has been accepted," said Minister Moyo.

"We are working with ZERA (Zimbabwe Energy Regulatory Authority) and ZESA, as well as with the Minister of Local Government, to identify those areas - starting with the big urban centres like Harare, Bulawayo, Mutare, Gweru, all the way to areas like Mutoko Centre or Maphisa, where housing construction is taking place but there is no electricity.

"We have assembled over 400 000 households in those cities, towns, and growth points. Now we have put out an advert and invited private sector players to indicate where they wish to participate. We will be working closely with ZESA and ZERA."

He added that the Government had developed measures to encourage investment and protect investors, including support for those accessing foreign financing.

"If an investor has access to funds from abroad and wishes to guarantee the importation of their equipment or ensure their ability to repay loans from foreign financial institutions, the Government facilitates this process," he said.

"In cases where investors wish to repatriate their profits, we sign a Government Project Support Agreement with the Ministry of Finance and the Reserve Bank of Zimbabwe. The Reserve Bank then issues letters of comfort outlining how these transactions can be carried out."

In a recent notice, ZERA said private sector participation in electricity distribution and retail would complement ongoing national efforts to achieve universal access to electricity by 2030, improve supply consistency, and extend access to underserved communities.

"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," the statement read in part.

Zimbabwe's power utility, ZESA, has in recent years struggled to maintain consistent electricity supply due to ageing infrastructure, limited generation capacity, and rising demand driven by rapid urbanisation and industrial expansion.

Analysts say the new framework could help bridge the energy access gap by introducing competition, innovation, and private capital into the electricity sector, supporting the country's broader drive toward economic transformation and energy security.