Mutapa, Indian firm seal US$455m Deal

The Mutapa Investment Fund (MIF) has sealed a US$455m concession agreement with Indian conglomerate Jindal Steel and Power Company for the rehabilitation of Units 1 to 6 at the the country’s largest coal-fired power plant, Hwange Thermal Power Station.

The deal, structured as a public-private partnership, allows Jindal to finance, operate, and rehabilitate the thermal units over a 15-year period, before handing them back to the Zimbabwe Power Company (ZPC), a power-generating subsidiary of ZESA Holdings now overseen by the Mutapa Fund.

Mutapa officials said Jindal will use its own capital to carry out the rehabilitation works and recover the investment through electricity sales during the concession period.

According to Mutapa, the agreement is designed to transfer both operational risk and financial responsibility to the private investor, while ensuring long-term benefits for Zimbabwe’s energy sector. The power utility will regain full control of the rehabilitated assets at the end of the 15-year term.

Mutapa’s Chief Investment Officer, Simba Chinyemba, confirmed that Cabinet had already approved the agreement and described the project as a critical intervention to stabilise Zimbabwe’s electricity supply.

“We have signed a new agreement. In fact, it has now been approved by Cabinet, which will improve the energy situation in this country, which is very important, for the rehabilitation of Unit 1 to 6 in one year with Jindal. It is a US$455m agreement,” Chinyemba said.

Zimbabwe continues to grapple with a chronic electricity deficit, with frequent blackouts disrupting productivity across key sectors of the economy. Many firms have been forced to install diesel generators or solar systems, pushing up operational costs amid high fuel prices and inconsistent energy access.

Hwange Thermal Power Station—commissioned over 30 years ago—has experienced a major decline in output due to ageing infrastructure, with most of its units now operating below capacity or offline altogether. Energy experts have long called for urgent rehabilitation to extend the station’s lifespan.

Previously, ZESA had entered into a separate US$800 million repowering agreement with Jindal, which aimed to ramp up Hwange’s generation from 420 megawatts (MW) to 900MW and extend the plant’s life by 15 to 20 years. However, that deal faced delays and was never fully implemented.

Zimbabwe’s peak electricity demand currently stands at about 1,800MW, yet available domestic generation averages around 1,300MW. This persistent shortfall has left authorities heavily reliant on costly power imports from regional utilities such as Mozambique’s EDM, Zambia’s ZESCO, and South Africa’s Eskom.

The new agreement with Jindal is expected to provide a long-term solution by restoring Hwange’s generating capacity and reducing the burden of power imports on Zimbabwe’s strained foreign currency reserves.

Mutapa manages a portfolio of 66 state-owned enterprises across key sectors, including energy, mining, agriculture, telecommunications, transport, financial services, and real estate. Since assuming control of several parastatals, the Fund has been pushing for commercial sustainability, partnerships, and investment-led recovery.

Chinyemba said the Hwange rehabilitation marks a major milestone for the Fund in unlocking value through strategic partnerships.