Online Reporter
Oliver Kazunga [email protected]
ZIMBABWE has saved nearly US$92 million in foreign currency after increased electricity generation from Hwange Thermal Power Station Units 7 and 8 significantly reduced the country’s dependence on imported power, highlighting the economic benefits of the US$1,5 billion expansion project commissioned under the Second Republic.
Latest figures from the Reserve Bank of Zimbabwe (RBZ) show that the country’s electricity import bill declined by 44 percent to US$117 million in 2025 from US$208,7 million in 2024, resulting in foreign currency savings of approximately US$91,7 million.
The development marks a major milestone in Government’s drive towards energy self-sufficiency, import substitution and industrialisation under Vision 2030 and the National Development Strategy 2 (NDS2).
For years, Zimbabwe spent substantial amounts of foreign currency importing electricity from neighbouring countries to bridge supply deficits caused by ageing power infrastructure, recurrent droughts affecting hydroelectric generation at Kariba and rising demand from households and industry.
The sharp decline in electricity imports reflects a significant turnaround in domestic power generation following the successful integration of Hwange Units 7 and 8, which added 600MW to the national grid.
As of May 30, 2026, Zimbabwe was generating 1 589MW, with Hwange contributing 990MW, Kariba Hydro Power Station 538MW and Independent Power Producers (IPPs) 61MW.
RBZ Governor Dr John Mushayavanhu said the decline in electricity imports was a direct result of increased domestic generation capacity.
“The country’s electricity imports stood at US$208,7 million in 2024 and US$117,0 million in 2025. The 44 percent decline reflected a strong recovery and growth in local power generation in 2025,” he said.
“The declining import trend reflects improvements in domestic power generation capacity, primarily the successful integration of Hwange Thermal Power Station units 7 and 8.”
The country’s electricity import bill averaged US$171,7 million between 2021 and 2025, underlining the substantial foreign currency burden Zimbabwe historically carried to sustain domestic electricity supplies.
For years, Zimbabwe relied heavily on imported electricity to bridge domestic supply deficits, with shortages disrupting industrial production, mining, agriculture and household consumption while placing sustained pressure on foreign currency reserves.
The commissioning of Hwange Units 7 and 8 by President Mnangagwa in 2023 has emerged as one of the flagship infrastructure projects of the Second Republic. The expansion project was implemented at a time when electricity shortages had become a major obstacle to economic growth, affecting mining, manufacturing, agriculture and other productive sectors.
Since the commissioning of the new units, Zimbabwe’s average daily electricity generation has risen sharply. Average generation increased by 76,8 percent to 1 537MW in 2025 compared to 866MW in the previous year.
The improved electricity supply has contributed to enhanced industrial productivity, reduced production disruptions and improved operating conditions for businesses that previously relied heavily on costly diesel generators and imported power.
Dr Mushayavanhu said Zimbabwe continued to maintain adequate foreign currency reserves to support strategic imports where necessary.
“The country has adequate foreign exchange to meet its import requirements, including electricity imports.
“International reserves stood at US$1,5 billion as of the end of April 2026, equivalent to over 1,5 months of import cover,” he said.
As part of a broader scope to boost power generation, the Government has moved to unlock nearly US$1 billion worth of private power investments through Treasury guarantees designed to fast-track 27 Independent Power Producer (IPP) projects.
The intervention — anchored on what the Government calls a Government Implementation Agreement (GIA) — seeks to accelerate electricity generation, reduce persistent power shortages and support Zimbabwe’s industrialisation drive at a time when growing demand continues to outstrip supply.
The 27 IPPs will collectively generate a combined capacity of an estimated 1 000MW once fully operational.
Under GIA — also known as the Government Project Support Agreement (GPSA), the Government provides sovereign guarantees to de-risk investments.
The framework assures economic tariffs, Power Purchase Agreements (PPAs), and foreign currency convertibility for qualifying IPPs.
One of the projects under GPSA, is the recently commissioned 10MW New Glovers Solar in Munyati, Kwekwe, which is already feeding into the national grid.
The project, which is a partnership between the Public Service Pension Fund (PSPF) and local investors, New Glovers Solar, is expected to produce 110MW when complete.
Energy analysts say improved electricity supply remains critical to industrial productivity, mining expansion and agricultural output, sectors that depend on reliable power for sustained growth.
The country is targeting 2 100MW from renewable energy sources by 2030, reinforcing broader plans to secure long-term energy sustainability and support industrialisation.
Zimbabwe is accelerating investments in renewable energy with the private sector participating, particularly in solar generation, as part of efforts to diversify energy sources and strengthen climate resilience.
Some of the private-led projects presently under construction include Sunny Jinlong, Zimplats Solar Project, Power Ventures, Mapanzure Solar, Houyontong Bijou Solar, and Zhongjin Heli phase 2, with a combined output of 635MW.
Improved electricity generation is increasingly easing pressure on foreign currency reserves while supporting industrial activity, mining and agriculture, sectors long affected by power shortages.
