Rutendo Nyeve, [email protected]
THE Mutapa Investment Fund (MIF) has mobilised US$317 million for Zesa Private Limited to anchor critical energy infrastructure projects, a senior official has revealed.
MIF Deputy Chief Investment Officer Mr Ernest Denhere said the capital injection has been channelled towards the rehabilitation of Hwange Unit 5, the construction of the Hwange–Mukuni 400kV transmission line, and project preparation for a massive solar energy pipeline.
Presenting at the recent Ministry of Energy and Power Development strategy review workshop in Victoria Falls, Mr Denhere said the fund is committed to ensuring Zimbabwe becomes a regional electricity trading hub through strategic investments in generation and transmission.
“We’re looking at mobilising capital for Zesa. I think the pipeline at Zesa is north of US$3 billion, so it’s not an easy task,” Mr Denhere said.
“MIF has translated its shareholder role into bankable funding structures that directly support grid reliability, generation recovery, and regional power trading.”
He said of the total mobilised, US$50 million has been disbursed for the Hwange Unit 5 rehabilitation, with a further US$70 million secured through a Stanbic facility.
The Hwange–Mukuni 400kV line, a 115km transmission project supporting wheeling and regional
trade, has secured a US$37 million facility with Stanbic.
Mr Denhere also revealed that US$5 million has been provided as a project preparatory facility for
solar energy, with an Afreximbank syndicated facility in progress.
According to Mr Denhere, the solar PV pipeline comprises 31 projects with a total capacity of 1 649
MW, representing 18 percent of the generation budget.
“Solar is the fastest, most capital-efficient lever in the generation pipeline,” Mr Denhere said.
“A modular, fast-to-deploy portfolio of solar sites delivering the lowest cost per MW in the generation pipeline.”
He highlighted the importance of the transmission programme, which includes 13 priority lines spanning 1 535 km at a total investment of US$703 million.
The largest projects include the Hwange–Sherwood 3 400kV line (US$170 million) and the Orange
Grove–Triangle line (US$161 million).
“Clearing these corridors converts blocked regional trade into wheeling revenue while curbing technical and non-technical losses,” Mr Denhere said.
He said the energy sector is central to MIF’s portfolio, which spans upstream, midstream, and downstream.
The fund holds a 10 percent back-end interest in Invictus Energy, a 40 percent stake in Hwange thermal coal mining, and significant interests in NOIC, Petrotrade, and Sable Chemicals.
“As an investment fund, our main task from the Government is really to create liquidity into our portfolio companies, better manage them, create financial returns and ultimately declare that as a dividend back into the treasury,” he said.
Mr Denhere said MIF’s value creation roadmap includes operational and financial improvement, governance and compliance, and balance sheet restructuring.
He emphasised the need for a predictable tariff regime, competitive procurement, and regional integration to ensure ZESA’s viability.
“We should be reinvesting to make sure Zimbabwe is a trading hub for electricity,” he said.
The workshop, attended by senior officials from the Ministry of Energy and Power Development,
Zera and Zesa, sought to align the sector’s strategic objectives ahead of the 2027 fiscal year.
Mr Denhere urged stakeholders to embrace competitive bidding processes to attract credible investors.
“If we want to have 1 000 megawatts of solar, let’s define those parameters, go into the market on a competitive basis, procure it. Then the lenders will trust us,” he said.
Meanwhile, the MIF also revealed that NOIC’s Feruka pipeline throughput is set to rise from three billion litres to five billion litres per year by 2027, with US$20 million internally funded to support the upgrade.
The mobilisation of US$317 million for Zesa represents a significant vote of confidence in Zimbabwe’s energy sector and a critical step towards achieving Vision 2030.
