Zimbabwe, InfraCo Africa ink power Deal

BUSINESS WRITER

Zimbabwe’s Energy and Power Development Minister, July Moyo, has signed a US$1.5m Government Project Support Agreement (GPSA) with InfraCo Africa to advance the development of the 30MW Vungu Solar Project in the central Midlands Province.

The landmark agreement marks Zimbabwe’s first internationally project-financed solar Independent Power Producer (IPP), positioning the country for increased foreign investment in its renewable energy sector.

The power deal was sealed on the sidelines of the ongoing Africa Energy Forum in Cape Town, South Africa, where energy ministers, financiers, and development partners from across the continent are meeting to drive forward Africa’s clean energy agenda.

Speaking at the signing ceremony, Moyo highlighted the strategic significance of the InfraCo Africa partnership, stressing the importance of government-private sector collaboration in delivering Zimbabwe’s renewable energy goals.

“This pilot project in Vungu — located in my home province — is a crucial step forward. We hope it will pave the way for similar ventures because we now have a roadmap developed in partnership,” Moyo said. “I want to thank all those involved, including our legal advisors who gave us the necessary comfort, even this morning, to proceed with the signing.”

Minister Moyo was accompanied by senior officials from the Zimbabwe Energy Regulatory Authority (ZERA) and the Zimbabwe Electricity Supply Authority (ZESA), signaling strong institutional support for the initiative.

The power deal with InfraCo Africa, part of the Private Infrastructure Development Group (PIDG), is expected to unlock further investment in Zimbabwe’s solar sector. Under the agreement, InfraCo will provide early-stage project development capital and technical expertise to de-risk the project and attract long-term financing.

Earlier in the day, Moyo participated in a high-level roundtable focused on accelerating the implementation of utility-scale solar projects across the continent. The session was hosted by South Africa’s Department of Electricity and Energy and sponsored by Sun Africa Renewable Energy Solutions.

In his presentation, Moyo provided a candid overview of Zimbabwe’s power generation capacity, its ageing infrastructure, and the pressures caused by climate change. He emphasized the urgency of transitioning to sustainable, decentralized power generation models, particularly solar.

“Zimbabwe is facing serious challenges with outdated energy infrastructure and unreliable rainfall patterns affecting hydroelectric output,” he said. “Solar energy, supported by international partners like InfraCo Africa, presents a credible solution to our energy deficit and climate vulnerabilities.”

Moyo noted that small-scale solar power plants supported by net metering are already contributing around 60MW to the national grid, with the potential to reach 100MW in the near future. He said the government was committed to scaling up such projects, backed by an enabling policy environment.

The Vungu Solar Project is expected to serve as a model for future Public-Private Partnerships (PPPs) in Zimbabwe’s renewable energy sector, offering a template for how government and international investors can work together to deliver bankable, large-scale solar infrastructure.

Sources close to the deal confirmed that the GPSA signed with InfraCo Africa includes a framework for ongoing cooperation in solar development, which could see the parties explore further power projects in Zimbabwe over the coming years.

As Zimbabwe battles chronic electricity shortages — which have often resulted in daily power cuts — the government has intensified its focus on diversifying the energy mix and embracing renewables as a long-term solution.

With abundant sunlight and growing investor interest, solar power is increasingly viewed as a cornerstone of Zimbabwe’s energy future.

The Vungu deal represents more than just a financial transaction; it signals Zimbabwe’s readiness to participate in the global energy transition and to do so through credible, internationally financed clean energy partnerships.