Online Reporter
Oliver Kazunga-Senior Reporter
ZIMBABWE has saved nearly US$92 million in foreign currency after expanded generation from Hwange units 7 and 8 led to a sharp reduction in electricity imports, signalling early returns from the US$1,5 billion expansion project.
Figures from the Reserve Bank of Zimbabwe (RBZ) show that the country’s electricity import bill dropped by 44 percent to US$117 million in 2025 from US$208,7 million in 2024, marking one of the steepest declines in electricity import expenditure in recent years.
The reduction translates to foreign currency savings of about US$91,7 million, easing pressure on Zimbabwe’s import bill and strengthening Government efforts to stabilise the economy through improved domestic production and reduced external dependence.
The sharp decline in electricity imports reflects growing local generation capacity, driven largely by expanded output at Hwange following the successful integration of Units 7 and 8.
As of May 30, 2026, national generation stood at 1 589MW, with Hwange contributing 990MW, Kariba (538MW) and Independent Power Producers (61MW).
RBZ Governor Dr John Mushayavanhu told Zimpapers last week that the country’s declining electricity import bill reflected a strong recovery in local power generation.
“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.
Commissioned in 2023 by President Mnangagwa, the US$1,5 billion Hwange Thermal Power Station Units 7 and 8 Expansion Project added 600MW to the national grid and has become central to Zimbabwe’s broader energy recovery strategy.
The project was undertaken at a time when electricity shortages had become a major constraint to economic growth, with ageing thermal infrastructure, climate-induced low water levels at Kariba Hydro Power Station and rising national demand, widening supply deficits. Zimbabwe’s average daily power generation increased by 76,8 percent to 1 537MW in 2025 from 866MW the previous year.
The improved domestic generation comes as the Government is intensifying efforts to achieve energy self-sufficiency and retain scarce foreign currency through import substitution under the National Development Strategy 2.
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.
