Online Reporter
Ivan Zhakata-Herald Correspondent
ZIMBABWE has unveiled a US$9,13 billion National Energy Compact aimed at sustainable energy development, boosting economic growth and achieving energy security across the country.
The announcement was made by the Minister of Energy and Power Development, July Moyo, while presenting on the National Energy Compact of Zimbabwe at the Africa Capital Markets Forum in Sandton, South Africa.
Minister Moyo said the compact served as a strategic framework to transform Zimbabwe’s energy landscape through increased investment, renewable energy expansion and public-private partnerships.
He said the compact was built on five key pillars consistent with commitments made at the Dar es Salaam Summit earlier this year.
“Following the summit, we ensured the compact was both accepted locally and enriched with input from the international community,” Minister Moyo said.
More than 200 stakeholders, including representatives from the World Bank, African Development Bank and the UN system, participated in consultations to align the framework with both national priorities and global energy goals.
“By March, the government formally accepted the compact for dissemination and broader consultations. In April, we engaged the World Bank during mid-term consultations and by June, we presented to a panel in London,” said Minister Moyo.
He said large electricity consumers will be required to establish their own captive power systems within two years, using solar or thermal sources, to reduce pressure on the national grid.
“Many private sector companies have already begun developing these facilities alongside Independent Power Producers.”
Minister Moyo said the Government had secured dedicated power supply for over 21 000 hectares of wheat fields through close coordination between the Ministry of Agriculture, utilities and stakeholders to ensure reliable energy for food production.
The minister also said there were plans to bring power to unreticulated housing developments across the country.
“We are addressing the challenge of ‘Dark Cities’ – housing developments long without electricity. Currently, 371 unreticulated set-ups exist,” he said.
Minister Moyo said private players have been licenced to reticulate these areas and recover their investments through the prepaid billing system.
He said community electrification projects financed through local banks had proven successful, showing the value of collaboration between Government, financial institutions and the private sector.
To encourage renewable energy development, Minister Moyo said the Government had implemented several incentives, including tax exemptions, VAT deferments and reduced licence fees for renewable projects.
“The Government Implementation Support Agreement ensures that if an off-taker fails to meet obligations, the Government steps in.
“This gives developers confidence to invest and expand the sector,” he said.
The Minister said key projects were currently underway, including a US$350 million hydro power station extension financed through a concessional loan and the Hwange 670MW expansion project, commissioned in 2023 at a cost of over US$1 billion.
“The Hwange project was executed through a TPP model, with 54 percent government equity and 46 percent partner equity, raising about US$300 million towards our share,” Minister Moyo said.
The minister said the total investment required to fully implement the compact stands at US$9,13 billion, with the Government seeking US$4 billion from international partners and investors.
Minister Moyo invited global financiers and development partners to support Zimbabwe’s energy transformation agenda.
“The National Energy Compact of Zimbabwe is more than a policy – it is a blueprint for energy security, economic growth and social progress,” he said.
“We invite investors, financiers and development partners to join us as we light up Zimbabwe, strengthen Southern Africa’s energy landscape and create a brighter, sustainable future for all.”
Peter Tanyanyiwa