Deal to fire up Hwange power station approved

We  publish here the 27th post-Cabinet media briefing presented by Information, Publicity and Broadcasting Services Minister, Dr Jenfan Muswere, in Harare yesterday.

THE PUBLIC-PRIVATE PARTNERSHIP PROJECT BETWEEN THE ZIMBABWE POWER COMPANY AND JINDAL

Cabinet considered and approved the Public-Private Partnership project between the Zimbabwe Power Company and Jindal (Private) Limited for the rehabilitation, operation and transfer of Hwange Power Station Units 1 to 6 and auxiliaries.

The project is aimed at reviving Hwange Power Station Units 1 to 6 and auxiliaries. Reviving Hwange Power Station’s first six units will benefit Zimbabwe by significantly increasing the national electricity supply, thereby reducing load shedding and ensuring reliable power for industries and households.

Reliable power will enable sustained production, boost industrial output, enhance economic activity and create jobs. Further negotiation refinements are ongoing to ensure that the partnership project serves the national interest.

URBAN LIVELIHOODS, RURAL LIVELIHOODS AND RURAL NUTRITION ASSESSMENT REPORTS

Cabinet considered the Zimbabwe livelihoods Assessment Committee 2025 reports on urban livelihoods, rural livelihoods and rural nutrition. The nation is being advised that the Zimbabwe Livelihoods Assessment Committee conducted the above-stated assessments from February 19 to  March 2 2025 and from May 21 to  June 9.

The purpose of the assessments was to provide an annual update on livelihoods in the country’s urban and rural areas, so as to inform policy formulation and guide the strengthening of interventions. The strong interventions resulted in improved food security, with Government being the main source of social support in the aftermath of an erratic start to the 2024/2025 summer rainfall season. Enhanced social stability impacted positively on the health, education and social well-being of households and communities.

The successes scored by the Second Republic are in the context of national and international food and nutrition and strategies under the National Development Strategy 1: 2021-2025; the Food and Nutrition Security Policy; Sustainable Development Goals; and the Zero Hunger Strategy.

Under the Basic Education Assistance Module (BEAM) Treasury paid ZiG 40 million in order to address the shortfall which existed since 2023, and will continue to prioritise the payment of BEAM funds, The proportion of households consuming globally acceptable diets increased in 2025, reflecting a significant improvement in quality of life in Zimbabwe.

Regarding child health, Vitamin A supplementation for children aged 6 to 59 months has surpassed the 90 percent national threshold. Of major concern, however, is the realisation that 35 percent of adults aged 18 to 59 years are overweight and obese. There is therefore need to raise awareness and upscale screening for the early detection of diseases and implementation of appropriate mitigatory measures.

Furthermore, the proportion of households practising the Pfumvudza/Intwasa climate-proofing strategy has increased from 47 percent in 2023 to 54 percent in 2025. The debt burden for most households decreased significantly. Going forward, social protection programmes spearheaded by Government will continue to provide goods and services to the most vulnerable groups such as widows, child-headed families and persons living with disabilities. The able-bodied will be encouraged to undertake public works that create community assets as they benefit from various Government support schemes.

PROPOSED MEASURES TO ADDRESS INFORMALISATION AND  PAYMENT SYSTEMS

Cabinet considered and approved measures to address informalisation and payment systems which was tabled before it following a study visit to India that was conducted by the Ministry of Finance, Economic Development and Investment Promotion and other relevant Government Ministries, departments and agencies, including the Reserve Bank of Zimbabwe.

Based on the insights drawn from the Indian payment system and broader financial inclusion strategies, Cabinet adopted policy measures to strengthen the Government’s digital payment ecosystem and facilitate the formalisation of the informal sector, including the following: putting in place a digital system to register all Micro; Small and Medium Enterprises (MSMEs) in order to come up with a national database; and reviewing of the current payment system limits regime across all payment streams, with a view to increasing the transactional limits and accommodating the activities of MSMEs.

The measures also include incentivising the informal sector to participate in the formal banking system, reducing reliance on cash transactions through the introduction of simplified Know Your Customer norms, zero-deposit basic savings accounts, and no-cost digital wallets tailored to micro-enterprises; and implementing streamlined business registration, of simplified tax filling, and digitised licensing processes for MSMEs in order to lower entry barriers and administrative burdens for informal businesses willing to formalise.

Other measures include creating incentives for registered businesses to enter the formal economy voluntarily; rolling out national campaigns to promote digital financial literacy; enhancing benefits of formalisation; increasing trust in the payment ecosystem; and strengthening collaboration with private sector players in order to invest in low-cost payment infrastructure, especially in rural and underserved areas.

SKILLS AUDIT IN THE AGRICULTURAL SECTOR

Cabinet considered the proposed skills audit in the agricultural Sector which aims to identify the current skills present within the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development.

The process will pinpoint existing gaps and anticipate future skills requirements in order to guide skills development initiatives and policy interventions. The agricultural sector remains a cornerstone of the country’s economy, contributing significantly to 52,53 percent of national employment, livelihoods, food security and export earnings.

The audit will assist policymakers in addressing skills shortages in an environment characterised by technological shifts, climate change as the nation seeks to raise production, productivity and enhance competitiveness on regional, continental and global markets. In specific terms, it will provide a detailed mapping of existing technical, business and soft skills across agricultural sub-sectors including crop and livestock production, fisheries, water resource management, and rural development.

PROPOSED PARTICIPATION OF THE PRIVATE SECTOR IN THE DISTRIBUTION AND RETAIL OF ELECTRICITY IN “DARK CITIES”

Cabinet considered and approved proposals for the participation of the private sector in the distribution and retail of electricity.

The electricity sector requires significant investments for power grid upgrades, expansion and modernisation, and the financing had been borne mainly by the Government.

As such, the opening up of the electricity supply industry to private sector involvement is being necessitated by the need for huge investment as well as improved efficiency and the integration of renewable energy sources.

Private sector involvement will improve services, reduce costs to Government and assist in the integration of renewable energy sources. The participation will also facilitate rapid infrastructure development, improve revenue collection and enhance operational efficiency.

Following approval by Cabinet for the active participation of the private sector, progress is expected to gather pace, given the existence of enabling laws and regulations. In this regard, the Electricity Act (13:19) (Section 44) allows for the licencing of secondary electricity distributors. The Zimbabwe Energy Regulatory Authority Act [Chapter 13:23] empowers ZERA to licence secondary distributors and retailers, while the Zimbabwe Investment and Development Agency Act [Chapter 14:38] facilitates investor participation under terms that favour the national interest.

Cabinet agreed that a model should be implemented whereby electricity reticulation is provided as part of the cost of stands in new residential areas.

Under the model, ZESA will provide the backbone in the form of a transmission line and a sub-station. Through a Statutory Instrument, a compliance certificate will only be issued to a property developer upon incorporation of electricity backbone infrastructure into residential developments. The model will enhance property value and improve its attractiveness.

Licencees will be permitted to distribute electricity to communities upon demonstrating both technical and financial capacity to develop, operate and retail electricity. The licencees will also be required to demonstrate compliance with regulatory standards and guidelines.

The nation is further informed that the Zimbabwe Electricity Transmission and Distribution Company will partner with banking institutions for the electrification of communities. The banks will then recoup their costs through ZETDC’s billing system.

Under the advanced net metering strategy, the private sector will provide electricity to off-grid suburbs utilising solar, with a backbone infrastructure expansion component that will ensure connection to the national grid in the long term. The private sector investors will recoup their costs through the ZETDC prepaid billing system. The model will facilitate expansion of electricity access to undeserved areas and contribute to the goal of universal electricity access by 2030.

PERFORMANCE OF THE RURAL ELECTRIFICATION FUND

The nation is informed that the Rural Electrification Fund (REF) has achieved significant progress under its mandate to electrify rural areas so as to close the developmental gap between urban and rural areas. During the period January 1 to June 30, 2025, REF has completed projects using three technologies, namely: grid extension; off-grid solar electrification; and biogas technology.

The main beneficiaries of the programme comprise 3 118 primary and 1 557 secondary schools, 1 046 clinics, 471 Government extension office centres, 304 chief’s homesteads, 1 311 business centres, 873 small scale farms, and 1 302 villages. REF is therefore on course to achieve its contribution to the attainment of Vision 2030 under the Second Republic’s all-inclusive development mantra.

REPORT ON THE TOUR OF LIBERATION WAR HERITAGE SITES IN THE REPUBLICS OF ANGOLA, TANZANIA, ZAMBIA AND MOZAMBIQUE BY VICE PRESIDENT MOHADI

Cabinet received and noted the report on the Tour of Liberation War Heritage Sites in Angola, Tanzania, Zambia and Mozambique by Vice President Col (Rtd) KCD Mohadi from August 18 to September 6, 2025.

The regional tour of the selected Zimbabwe Liberation War Heritage sites in Angola, Mozambique, Tanzania, and Zambia was undertaken as a strategic exercise to preserve, document, and honour the liberation legacy within a broader regional and Pan-African framework.

The tour provided an opportunity to evaluate the historical, cultural, and political significance of these sites while identifying pressing gaps in their preservation, accessibility, and interpretation. It further created a platform to reinforce bilateral and multilateral collaboration with host nations, thereby strengthening cultural diplomacy and regional integration.

VP Mohadi  visited various sites in Angola, Tanzania, Zambia and Mozambique. Of interest, is the Bagamoyo freedom fighters training camp in Tanzania, that operated from 1963 to 1975, training freedom fighters, including President Mnangagwa, the late Chief of Defence, Cde Josiah Tongogara, the late national chairman of ZANU PF Cde Hebert Chitepo, the late Gen (Rtd) Solomon Mujuru, alias Rex Nhongo, and the late first Commander Defence Forces, Gen (Rtd) Vitalis Zvinavashe, alias Sheba Gava.

VP Mohadi also visited the historic Mgagao training camp in Tanzania which played a pivotal role in shaping the fate of Zimbabwe’s liberation struggle as it served as a crucial training ground for freedom fighters, providing them with the necessary skills, ideological guidance and logistical support to wage a successful battle against colonial regime.

Notable figures who were trained at Mgagao included the Honourable Vice President Gen (Rtd) Dr CGDN Chiwenga, and the current Commander Defence Forces General Philip Valerio Sibanda. Another site of interest that VP Mohadi visited was Nachingwea training Camp, which consisted five regiments, each training freedom fighters. It is estimated that a total of 15 000 fighters were trained in three batches.

The tour generated comprehensive recommendations that emphasised policy, institutional, financial, and community-based interventions to safeguard and energise  the liberation legacy. Recommendations also called for a joint Liberation Heritage Commission; infrastructure upgrades; integration into Education 5.0; tourism linkages; and oral history projects to ensure inter-generational knowledge transfer.

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