Online Reporter
Tapiwanashe Mangwiro
Senior Business Reporter
IN a development likely to have a significant impact on Zimbabwe’s energy security in the future, the sector accounted for nearly three-quarters of proposed investments into the country in the second quarter of this year.
The latest official data shows that investors have expressed interest in sinking US$2,47 billion into new energy projects, which can go a long way in plugging the country’s power deficit.
Zimbabwe currently faces a shortage of electricity, amid rapid economic growth prospects going forward, which requires extensive investments to match the growing demand and achieve self-sufficiency.
Peak demand for electricity in Zimbabwe may reach 2 200 megawatts (MW), but constrained capacity, including due to low water levels at the country’s hydro power station and old equipment, sees the country produce an average of 1 400MW.
In response, the Government is working on a multifaceted approach to bridge the energy supply gap, including expanding coal and gas power generation, increasing renewable energy sources, and attracting private investment.
Zimbabwe is also focusing on improving energy infrastructure, enhancing energy efficiency and expanding access to electricity, particularly in rural areas
According to the latest quarterly report from the Zimbabwe Investment and Development Agency (ZIDA), energy alone accounted for over 73 percent of the projected US$2,47 billion in new investments licenced during the period.
Two energy projects, one focused on liquefied natural gas (LNG) and another on renewable power, were primarily responsible for the large chunk of the proposed investments.
The biggest approval is for a US$1,8 billion project in Matabeleland South, targeting natural gas and fertiliser production.
“This project alone represents a seismic shift in investor appetite for large-scale, long-term capital deployment,” ZIDA said in its report. “It underscores growing confidence in Zimbabwe’s capacity to host complex infrastructure ventures.”
While fossil fuels remain a critical part of Zimbabwe’s mix, the proposed investment narrative is shifting.
Several other licences, though smaller in value, target solar generation and smart energy solutions. Others include proposed solar plants, a 60MW and a 10MW facility, both of which are currently undergoing pre-feasibility assessments.
ZIDA emphasised the strategic nature of this sectoral focus saying, “Energy infrastructure is a foundation for industrial growth. By facilitating these projects, we are laying the groundwork for wider economic transformation.”
The agency has also partnered with the Zimbabwe Energy Regulatory Authority (ZERA) to ease import restrictions for critical solar components through a rebate provisioned under Statutory Instrument 35 of 2025.
This allows approved operators to import solar panels, electric vehicle chargers, battery systems and inverters without the burden of import taxes.
“This rebate aligns with Zimbabwe’s climate commitments and opens the door to further private sector involvement in the green economy,” ZIDA noted.
Investors’ pivot towards energy investment comes amid rising electricity shortages across the region and a renewed global push for climate-aligned infrastructure.
As southern Africa grapples with unreliable supply from traditional grid sources, Zimbabwe is positioning itself as an emerging player in both generation and cross-border power trade.
“Investors are seeing Zimbabwe not just as a domestic opportunity, but as a strategic node in a wider regional grid,” said ZIDA’s chief facilitator, Felisters Chikandiwa, at the Strategy, Execution, Advisory Talk (SEAT) Africa Summit in Victoria Falls earlier this year.
“The projects under consideration have both local relevance and export potential.”
While the second quarter recorded a slight decline in the overall number of project licences, 190 projects compared to 207 worth in the first quarter, the size of individual projects has grown.
Foreign currency cash injection represented US$2,1 billion, or 85,7 percent of total proposed investments, a sharp uptick from the first quarter commitments where imported capital equipment dominated.
“This suggests a shift towards direct equity financing, which is typically more stable and less reliant on external debt,” ZIDA explained.
It also indicates growing investor willingness to commit their own capital upfront, a strong signal of long-term confidence.
PPPs are emerging as a preferred model for energy projects.
In the second quarter, ZIDA approved a US$455 million public-private partnership (PPP) proposal from the Zimbabwe Power Company (ZPC) for the rehabilitation of Hwange Thermal Power Station units 1–6.
The Cabinet has since approved negotiations on the concession agreement.
“We are moving toward bankable, de-risked and scalable PPPs,” said ZIDA. “This reflects growing alignment between Government infrastructure priorities and private investor expectations.”
The agency also reported increasing investor interest in renewable energy from regional and international players.
While the numbers are promising, ZIDA noted that licencing is just the beginning.
“Project preparation and execution will be critical,” ZIDA said, stressing the importance of feasibility studies, environmental clearances and land access.
The investment authority has created a register of transaction advisors to assist Government departments in strengthening project readiness.
Eleven advisory firms have so far been listed, reflecting the agency’s resolve to match investment opportunities with institutional capacity.
“Infrastructure investment is a marathon, not a sprint,” Ms Chikandiwa said. “But the starting gun has fired and Zimbabwe is running in the right direction.”
