Vusumuzi Dube
Rutendo Nyeve,Victoria Falls Reporter
THE Government is aggressively courting global investors to transform the country’s energy landscape, leveraging on sweeping reforms, liberalised markets, and untapped renewable potential to position the nation as Africa’s energy investment frontier.
A high-profile delegation, led by Minister of Energy and Power Development July Moyo and Minister of Mines and Mining Development Winston Chitando was recently in Australia to attract private capital at the Africa Down Under Conference in Perth.
The ministers showcased opportunities across mining and energy, emphasising the critical link between reliable power and economic development.
The delegation revealed that Zimbabwe’s energy sector has undergone a paradigm shift from state-controlled monopoly to a competitive, open market.
Acting Managing Director of the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), Engineer Abel Gurupira, highlighted this transformation.
“We are no longer a monopoly. That is gone. So, we have got to a point where we realise our mandate as a Government entity and the space that we operate in, and then realise that we also have to allow the private sector to come in, in a big way to cover the deficit or the gap that is there,” said Eng Gurupira.
This liberalisation allows businesses to generate their own power through captive installations, sell surplus electricity to the grid, and source energy from suppliers across Africa, a key step toward an integrated African single electricity market .
To de-risk investments, the Government has introduced robust financial safeguards.
Minister Moyo detailed these measures in his address to Australian investors.
“We have signed what we call Government Project Support Agreements which the Minister of Finance signs and I sign to affirm that you will be able to repatriate your dividend. Yes, you will be able to pay your loans in foreign currency,” said Minister Moyo.
A innovative aspect of the Government’s strategy is the mobilisation of local capital.
Minister Moyo said partnerships with domestic pension funds, including the National Social Security Authority and industry-specific schemes can be pursued to invest in the energy sector.
“Energy is a good place for you to invest, so you can partner with them. It is giving you a de-risking feeling
“We are doing a lot to make investment more transparent, more attractive, and to ensure that investors make money,” said Minister Moyo.
The successful 5 MW Mutirikwi hydro project, funded by a cocktail of foreign investors, public pension schemes, and private sector funds exemplifies this model.
Diaspora investments are also encouraged, particularly for distributed renewable energy projects aligned with the Government’s goal to electrify all rural schools and clinics by 2026 .
Additionally, projects benefit from tax incentives, duty exemptions, and streamlined licensing processes.
The Zimbabwe Energy Regulatory Authority (ZERA) CEO Eddington Mazambani said the authority has slashed licensing timelines from 180 days to 90 days or less.
“We have shortened the time lines and we have committed to do it in 90 days. But we are doing this in a much shorter period through pre-licensed competitive bidding and parallel processing,” he said.
Zimbabwe’s renewable energy drive is gaining momentum.
The Zimbabwe Renewable Energy Fund (REF Zimbabwe), launched in 2024 with US$16 million from the UN Joint SDG Fund and Old Mutual, has already approved transactions totaling US$7.81 million for solar projects at agro-processing sites, hospitals, and remote communities.
These projects blend developmental impact with commercial viability, such as the 1.1 MW solar plant for Dairibord Zimbabwe, which supports 480 small-scale dairy farmers and cuts 26,000 tons of carbon emissions annually.
With a target to develop 1 800 MW of grid-connected solar by 2030 and vast untapped hydropower potential, Zimbabwe offers diverse opportunities for investors.
Online Reporter