Govt unveils ambitious energy compact to drive inclusive power access by 2030

STAFF WRITER

Government has launched a comprehensive Energy Compact in partnership with the African Development Bank (AfDB) and the World Bank, under the flagship Mission 300 initiative, a US$5bn drive to connect 300m people in Sub-Saharan Africa to electricity by 2030.

The Energy Compact is a major step towards Zimbabwe’s goal of universal access to reliable, affordable, and sustainable energy by 2030, with a sharp focus on economic transformation, industrial growth, and environmental sustainability.

Presenting the 2025 Mid-Term Budget Review, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the initiative reflects Government’s unwavering commitment to overcoming Zimbabwe’s long-standing energy challenges and unlocking broad-based development.

“Despite the country’s abundant renewable energy resources, a significant portion of the rural population remains without electricity. The prevailing reliance on traditional biomass for cooking not only hampers social and economic development but also exacerbates environmental degradation and gender inequality,” said Professor Ncube.

He added that the Government is determined to resolve these energy deficits and ensure an optimal power supply that supports industrialisation, healthcare improvements, education access, and climate action.

To achieve this, Zimbabwe will pursue an integrated energy expansion strategy—extending the national grid, rolling out decentralised mini-grids, and promoting off-grid solar systems.

In addition, the Government plans to significantly increase the share of clean energy in household consumption, particularly for heating, aiming to grow from the current 39% to 70%. This transition is expected to reduce the adverse health and environmental effects of biomass use, while enhancing energy access in under-served communities.

The Compact will also support a diversification of Zimbabwe’s energy mix, with renewable energy projected to rise from 8% to nearly 30% of total generation. This shift aligns with Zimbabwe’s climate-resilient development agenda and the global push for a low-carbon future.

“This reflects a transition towards a more inclusive and sustainable energy landscape capable of underpinning the country’s long-term economic transformation,” Professor Ncube said.

The Treasury chief emphasised that energy security is fundamental to Zimbabwe’s ambition of becoming an “Empowered and Prosperous Upper Middle-Income Society by 2030.”

As the global energy landscape shifts toward low-carbon solutions, Zimbabwe is aligning its energy investment priorities to accelerate its own green transition. The Government is confident that this pivot will boost productivity, stimulate new economic drivers, and improve national competitiveness.

Zimbabwe currently faces a power supply deficit, with maximum available production capacity at approximately 1 500 megawatts (MW), against a national demand of around 2 000MW. That demand is projected to surge to over 5 100MW by 2030, driven by rising energy needs in mining, manufacturing, agriculture, and household consumption.

However, Professor Ncube noted that recent investments have already begun to ease the burden. The completion of the Hwange Power Station expansion—Units 7 and 8—has added a combined 670MW to the grid, with both units reaching full capacity in March 2025. Upgrades to Units 1 to 6 are also ongoing.

Complementing these efforts is the growing adoption of captive power solutions, especially solar installations by businesses and households. These private initiatives have added at least 86MW to the national energy capacity, reducing pressure on the grid and advancing renewable energy goals.

“The increased adoption of solar energy supports the country’s environmental goals by reducing greenhouse gas emissions and promoting sustainable development,” Minister Ncube said.

Energy experts agree that a stable power supply is indispensable for economic growth and industrial competitiveness, particularly in critical sectors such as agriculture, mining, and tourism.

Ultimately, Zimbabwe’s Energy Compact is expected to serve as a cornerstone for inclusive development, paving the way for universal energy access and positioning the country as a regional leader in sustainable energy transition.