Zimbabwe’s recent move to adopt tariffs that accurately reflect the true costs of energy is shaking things up in the sector, and the ripple effects are already being felt. This strategic shift, initiated in December, is not just a bureaucratic tweak; it’s a game changer. The Zimbabwe Electricity Supply Authority Chairman, Sydney Gata, revealed at an energy summit in Victoria Falls that the country is now witnessing a surge in energy investments—3,000 megawatts of projects are currently in the pipeline.
This kind of momentum doesn’t come around often. Gata’s remarks underscore a pivotal moment: he urged the mining sector to step up and invest in electricity infrastructure without relying on government subsidies to cushion their risks. To everyone’s surprise, the response was overwhelmingly positive. This newfound willingness among miners to invest in energy infrastructure signals a shift in the relationship between the government and the private sector, which could redefine how energy projects are financed and developed in Zimbabwe.
The urgency of this investment boom is underscored by the dire power situation in the country. The Kariba Dam, which traditionally serves as Zimbabwe’s main energy lifeline, is currently limping along at just a fraction of its capacity. With hydroelectric generation severely hampered by drought conditions, the nation is grappling with a power generation of merely 1,189 megawatts—far below the demand, which is nearly double that figure. The mining sector alone currently requires around 700 megawatts, and projections suggest that demand could soar to 2,000 megawatts in just a few years.
What’s on the horizon? The refurbishment of coal-fired plants by Jindal Steel and Power Ltd., along with solar power initiatives from Tsingshan Holding Group Co.’s Afrochine Smelting Ltd. and PPC Ltd., are set to come online next year. These projects are not just about adding megawatts to the grid; they represent a diversification of Zimbabwe’s energy portfolio, which has been heavily reliant on hydroelectric power.
If all goes according to plan, Zesa anticipates that power cuts could become a thing of the past by late next year, with a complete halt to electricity imports by 2026. This is not just a wishful thought; it’s a roadmap that could lead Zimbabwe toward energy independence and stability.
The implications of these developments are profound. As the mining sector continues to grow—driven by the demand for lithium, coal, iron, and steel—the need for robust and reliable energy sources will only escalate. This newfound investment climate could attract further foreign investment, stimulate job creation, and ultimately lead to a more resilient economy. Zimbabwe stands at a crossroads, and how it navigates this energy transition could serve as a blueprint for other nations facing similar challenges. The stakes are high, but the potential rewards are even higher.
