Zimbabwe opens electricity distribution to private players

Zimbabwe has opened the electricity distribution and retail sector to private players under Statutory Instrument 128 of 2026, allowing companies other than the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) to distribute and sell electricity.

Under the new regulations, independent distribution operators will be issued 25-year renewable licences through a competitive bidding process. Their tariffs will be capped at the rates charged by ZETDC, as approved by the Zimbabwe Energy Regulatory Authority (ZERA).

The regulations also place new obligations on property developers, requiring them to finance and construct electricity infrastructure for new residential, commercial and industrial developments before selling or leasing serviced stands.

Developers who fail to comply could face fines, imprisonment and suspension of their development permits.

The measure is intended to prevent a situation where ZETDC is required to retrofit electricity infrastructure into settlements after residents have already occupied the developments.

The new framework is aligned with Zimbabwe's National Energy Compact under Mission 300, which commits the country to introducing private electricity distribution and retail licensing, alongside regulations providing for third-party access to the national grid.

Zimbabwe is targeting 520,000 new household electricity connections annually by 2030, comprising 320,000 on-grid connections and 200,000 off-grid connections.

That target represents a significant increase from the country's current connection rate of between 40,000 and 60,000 households a year.

ZETDC will retain control of the transmission network but will be required to make substations and transmission lines available for use by licensed private operators.

However, no private company has yet been publicly identified as an applicant or licence holder under the new distribution framework.

The reforms come as ZERA is also changing the way new electricity generation projects are brought to market.

From 2026, the regulator is moving away from unsolicited bids towards a competitive tendering system for generation projects.

ZERA chief executive Edington Mazambani said some applicants had previously been seeking electricity-generation licences for speculative purposes and using the licences to raise financing rather than developing the proposed projects.

The combined reforms are expected to increase private-sector participation in Zimbabwe's electricity sector while placing greater emphasis on competitive procurement, infrastructure investment and expanded access to electricity.

The Government hopes the new framework will help accelerate electrification and reduce the infrastructure burden on ZETDC as Zimbabwe works towards its 2030 energy-access targets.