Zimbabwe courts Japan’s energy giants

SAMANTHA MADE

The Government of Zimbabwe has launched a high-stakes charm offensive on Japanese energy giants, seeking desperately needed investment to plug the country’s deepening power crisis that is stalling economic recovery and scaring off investors.

Energy and Power Development Minister July Moyo, who is accompanying President Emmerson Mnangagwa on an official visit to Tokyo, said Harare is pitching Japanese firms to help overhaul its ailing electricity sector and restore reliability to an economy increasingly using diesel generators.

“We were pitching our investment program to a number of companies that we think might be attracted to come and invest in Zimbabwe,” Moyo said after touring Toshiba, Hitachi and other Japanese energy majors.

“The biggest company we visited was Hitachi, where we were shown their factories where they produce transformers, generators, and transmission equipment. We think that because of that, companies in Japan might want to cooperate with us. We also think that a number of smaller companies that are interested in solar energy will join us in investing.”

The mission forms part of a wider programme of factory visits and high-level meetings with Japan’s Ministries of Energy and Economy. Zimbabwe is betting that Japanese expertise in power generation, transmission and renewable energy can be harnessed to close its yawning supply gap.

Currently, Zimbabwe generates between 1,200MW and 1,500MW daily from its two main power plants—Hwange and Kariba—against demand of about 1,800MW. To cover the shortfall, state-owned ZESA has resorted to costly power imports from regional utilities.

The deficits have hammered industry. Mining companies, the backbone of foreign currency earnings, have been forced to curtail operations or run on expensive diesel generators. Manufacturers say erratic supply has pushed up production costs, eroding competitiveness in both local and export markets. Smaller businesses without backup systems often shut down entirely during outages.

“The distribution network needs reinforcement, expansion and rehabilitation to improve reliability of supply,” Moyo conceded.

Even Zimbabwe’s prized role as the central transmission corridor of the Southern African Power Pool is now undermined by dilapidated infrastructure.

Harare is especially eager to tap Japan’s depth in managing complex power systems.

“We think that the Japanese also operate something like 10 power pools, so we can learn from them,” Moyo said.

“We are asking for technical assistance to bring our own people here so they can train and see how those power pools in Japan operate.”

Moyo also suggested Zimbabwe’s lower labour costs could be an advantage for Japanese firms seeking to localise operations.
“You can lower the price, in our view, by doing your assemblies or factory works in Africa, where labour is still much cheaper than it is here in Japan,” he said.

Zimbabwe’s pitch builds on its new Energy Compact, drawn up with the African Development Bank and World Bank, which aligns with the continental goal of universal electricity access by 2030. For Zimbabwe, that translates into universal power coverage, access to clean cooking energy, and a climate-resilient grid.

In the last quarter of 2024, Hwange contributed 72.4% of national supply and Kariba 22.7%, according to ZimStats, with independent producers accounting for less than 5%.

“The reality is that dependable capacity has remained constrained, resulting in the need for imports and load shedding to ensure system stability,” Moyo admitted in his Energy Compact briefing.

For Zimbabwe’s battered industries and weary citizens, the hope is that Japan can help flick the switch before the economy is plunged deeper into darkness.