Zim seeks more than US$4bn investment to revitalise power sector
CLOUDINE MATOLA
The Government of Zimbabwe is courting international investors to mobilise more than US$4bn to address the country’s energy challenges, modernize its grid, and boost power generation across the nation.
Deputy Minister of Energy and Power Development, Yeukai Simbanegavi, who spoke during the sixteenth session of the International Renewable Energy Agency (IRENA) in Abu Dhabi this week, unveiled a comprehensive strategy.
The plan centres on de-risking the energy market and launching competitive procurement for Independent Power Producers (IPPs).
“Through the Compact, Zimbabwe aims to expand installed capacity, modernise transmission and distribution networks—including smart metering—scale up off-grid electrification through private sector engagement and results-based financing, and mobilise over US$4.42 billion in private investment by de-risking the energy market and launching competitive IPP procurement,” Simbanegavi stated.
The deputy minister emphasized that renewable energy is already delivering tangible benefits beyond mere electricity access, particularly in agriculture and healthcare.
“Renewable energy is being deployed to support irrigation, cold storage, agro-processing, and value addition, reducing post-harvest losses, strengthening rural incomes, and supporting the Government’s Rural Electrification Programme and Village Business Units,” she said.
Highlighting its impact on social services, she added, “In the health sector, renewable energy solutions are improving reliability of power supply, strengthening resilience, and enhancing service delivery, especially in rural and underserved communities.”
These efforts, Simbanegavi noted, are central to the country’s vision for a just energy transition. “These efforts reflect Zimbabwe’s commitment to people-centred, impact-driven energy transitions. Zimbabwe attaches great importance to ensuring that the energy transition delivers tangible benefits for people’s lives and livelihoods.”
The country is actively participating in IRENA’s “Powering Lives and Livelihoods through Renewables” initiative, which has demonstrated the “transformative potential of renewable energy in productive sectors—particularly the agri-food value chain and the health sector.”
However, the path forward is not without obstacles. Simbanegavi acknowledged that significant hurdles remain. “Despite this progress, challenges remain, particularly in accessing affordable long-term finance, addressing high upfront investment costs, grid constraints, and capacity gaps.”
To overcome these barriers, she concluded that “addressing these challenges will require innovative financing mechanisms, effective risk-mitigation instruments, and strengthened international cooperation.”
