Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
THE country’s power generation sector has had a massive boost with Government approving the participation of private players in the retailing and distribution of electricity, marking a major policy shift aimed at accelerating the country’s goal of achieving universal access to electricity by 2030.
In a notice on Thursday, the Zimbabwe Energy Regulatory Authority (ZERA) said the liberalisation of the electricity retail space is expected to attract private investment and improve service delivery.
“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 statement.
“Following this development, the Zimbabwe Energy Regulatory Authority (ZERA) and Zimbabwe Electricity Transmission and Distribution Company (ZETDC) would like to invite the public and all stakeholders for the increased participation in the distribution and retail of electricity in Zimbabwe.”
According to the authorities, the move is designed to attract investments in secondary electricity distribution infrastructure in terms of section 44 of the Electricity Act, focusing on improving efficiency and extending coverage to under-served areas.
“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,” said ZERA.
It is envisaged that new investments will facilitate rapid infrastructure development, reduce costs to the Government and integrate renewable energy sources into the national grid.
“It is envisaged that new investments will facilitate rapid infrastructure development, with reduced costs to the Government, whilst integrating renewable energy sources into the national grid,” the statement added.
As part of key features of the new model private companies will now be licensed to distribute and retail electricity, particularly in under-served and new residential areas, working alongside ZETDC to expand the national electricity footprint.
“Private companies will be licensed to distribute and retail electricity in under-served areas, complementing the work of ZETDC.”
Added to that to qualify, potential licensees must demonstrate both technical and financial capacity to develop, operate, and manage retail electricity systems in line with Zimbabwe’s laws and regulations.
“Potential licensees must demonstrate technical and financial capacity to develop, operate, and retail electricity, and comply with the country’s statutes, regulatory standards and guidelines.”
Reliable and sufficient power generation is central to Zimbabwe’s industrialisation, economic growth and social development agenda.
Energy is the lifeblood of productive sectors such as mining, agriculture and manufacturing and is essential for driving new investments under the National Development Strategy 1 (NDS1).
Electricity also underpins the delivery of basic services such as healthcare, education, and water supply — all of which are key to improving the quality of life and achieving Vision 2030.
Over the past decade, Zimbabwe has faced persistent power shortages caused by ageing infrastructure, limited generation capacity, and growing demand from an expanding economy. These constraints have resulted in load-shedding, reduced productivity, and higher operating costs for businesses.
By opening up the electricity retail and distribution space to private players, the Government aims to decentralise the sector, improve efficiency, and attract capital to strengthen generation and transmission capacity.
