Online Reporter
Sunday Mail Reporter
ZIMBABWE has launched a major push to attract global investment into its energy sector, with the goal of mobilising over US$16,8 billion to develop its electricity generation capacity and expand access to power over the next five years.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the Government last week presented investment opportunities in the energy sector directly to several multilateral financiers and private sector investors during engagements at the 2025 Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group in Washington, United States.
“The one area where we have been participating as Zimbabwe is on the Energy Compact, where we are interacting with the World Bank, the African Development Bank and private sector investors on where the opportunities lie in Zimbabwe for investment right through the energy sector value chain, from production of power to transmission to distribution and final retail of power,” said Prof Ncube.
“All along, those value chains are investment opportunities where we can crowd in the private sector and unleash some incentives to attract the private sector. We have already done a lot, but we need to do more.”
Zimbabwe’s energy investment mobilisation plan seeks to raise over US$16,8 billion across several key areas of the sector.
Of this amount, approximately US$11,3 billion is targeted for electricity generation projects, with the Government expecting about 90 percent of this financing to come from private sector investors.
A further US$2,97 billion is needed to expand grid access, and this component will be wholly funded through public sector investment to ensure broader national coverage, especially in underserved rural areas.
Additionally, Zimbabwe aims to mobilise around US$791,5 million to support clean cooking initiatives, such as promoting cleaner energy alternatives to firewood and charcoal.
For this segment, 70 percent of the funding is expected to come from private investors, while the remainder will be supported by public sector and development partners.
Prof Ncube said Zimbabwe was encouraging captive power investments, where companies generate their own electricity, and offering incentives for businesses to feed surplus energy into the national grid.
“We are looking at how we can incentivise more of that kind of investment, where companies are generating their own power and they are given incentives to offload onto the grid,” he said.
Speaking separately at the National Energy Compact session at the Spring Meetings, Energy and Power Development Minister July Moyo outlined the major challenges facing Zimbabwe’s energy sector, including ageing infrastructure and limited access to finance.
To address these challenges, Minister Moyo said the Government embarked on a comprehensive set of reforms aimed at accelerating access to electricity and promoting clean energy solutions.
Among the measures being implemented is the attainment of cost-reflective tariffs to ensure the power utility can recover operational costs, improve its creditworthiness and strengthen its capacity to purchase power from private developers.
He said the Government was rolling out a programme for the installation of smart and prepaid metering systems to enhance revenue collection, targeting full collection efficiency.
In addition, he said, the authorities introduced third-party access regulations to allow independent power producers to use the national grid on a non-discriminatory basis, giving them the freedom to supply electricity directly to customers of their choice.
“To realise its energy ambitions, the Government has set the following ambitious targets: to achieve 100 percent household electricity access by 2030, through a combination of on-grid, mini-grid and standalone solar systems. Raise access to clean cooking solutions from 38,6 percent to 70 percent, reducing reliance on firewood and charcoal.
“Increase installed generation capacity from the current 2 962 megawatts (MW) to 10 938MW, and increase renewable energy contribution from 1 282MW to 4 438MW.
“We also plan to expand the share of non-hydro renewable energy in the power mix from 7,8 percent to 31 percent, contributing to climate resilience and energy diversification.”
Minister Moyo said as part of broader structural reforms, the Government was restructuring the national power utility to improve operational efficiencies and service delivery.
