Robust risk management crucial to resolving Zimbabwe’s power crisis: Dr Mangudya

ROBIN PHIRI AND SAMANTHA MADE

Zimbabwe’s longstanding energy challenges can only be overcome through strong investor confidence and robust risk management, said Dr. John Mangudya, CEO of Mutapa Investment Fund, as ZESA steps up efforts to safeguard critical infrastructure and unlock new capacity.

Represented by Rugare Dobbie, Mutapa’s Head of Corporate Affairs and Communication, at the ZESA Holdings Risk Management Awards held in the capital Harare on Friday, Dr. Mangudya emphasized that mitigating investment risks is fundamental to the success of power projects.

“In addressing energy security, it is crucial that we focus on mitigating investment risks associated with power projects,” he said. “This type of risk has a major impact on the energy business. First, we must consider capacity risk, which necessitates implementing cost-reflective tariffs as a key mitigation measure. This approach will ensure that investments in power capacity are sustainable and economically viable.”

Dr. Mangudya also stressed the importance of protecting investors from currency volatility, urging monetary authorities to “provide currency guarantees to shield investments from fluctuations and uncertainties in the currency market.”

ZESA has identified capacity, currency, and implementation as the core risks threatening energy projects. To address these challenges, it is streamlining Government Implementation Agreements (GIAs) to accelerate renewable energy development—particularly solar power—as Zimbabwe targets 1,000 megawatts of renewables from Independent Power Producers (IPPs).

“These instruments contribute towards boosting solar power production by supporting solar IPP projects in the country,” ZESA confirmed.

Recognizing vandalism as a critical threat to energy security, ZESA is combating sabotage through collaborative stakeholder engagement and innovative technology.

The Transformer Monitoring System, developed by Powertel Communications, employs sensors and remote alarms to detect abnormal vibrations, unusual sounds, and suspicious activity—enabling rapid responses to prevent damage.

Aligned with Zimbabwe’s National Development Strategy 1 and Vision 2030, ZESA is expanding generation capacity and modernizing the grid. Key projects include the Hwange Power Station Unit 16 repowering, construction of new primary substations, and repurposing small thermal plants.

Despite resource constraints, flagship initiatives such as electrifying Cyber City and the new Parliament Building in Mt Hampden are progressing steadily.

To reduce reliance on imports and cut infrastructure costs, ZESA is establishing a cable manufacturing plant while expanding its operational fleet. It has also launched a Drone Technology Training School to enhance line patrols and fault detection.

Partnerships with insurers such as Cell Insurance Company have strengthened risk management efforts, reducing operational vulnerabilities.

Deputy Chairperson Albert Nduna emphasized the awards’ theme: “In Pursuit of Environmental, Social, and Governance Excellence for Sustainable Energy Security and Socio-Economic Growth.”

“As a responsible corporate citizen in Zimbabwe, we recognize the urgent need to balance increasing energy demands with environmental stewardship, community empowerment, and ethical governance,” Nduna said.
“This ceremony celebrates exemplary risk management and inspires a culture of strong risk practices across the ZESA group.”

Dr. Mangudya and ZESA underscored that Zimbabwe’s energy future depends on a collective effort among investors, government, and the private sector.

With strategic investments, innovation, and effective risk mitigation, Zimbabwe can secure reliable power, fuel economic growth, and realize Vision 2030.