Zimbabwe opens energy sector to global investors

STAFF WRITER

Zimbabwe has thrown open the doors of its energy sector to international investors, offering compelling opportunities in renewables, infrastructure rehabilitation, and cross-border power trade.

This was the core message delivered by Energy and Power Development Minister July Moyo during the high-level Mission 300 Private Sector Consultation in London, where he made a passionate appeal for global collaboration to unlock the country’s vast energy potential.

The event, designed to facilitate international partnerships in Africa’s energy transformation, was inaugurated by Lord Collins of Highbury, the UK’s Undersecretary of State for Africa. A powerful keynote by African Development Bank President Dr. Akinwumi Adesina set the tone, emphasizing the urgent need for innovative partnerships to address Africa’s energy deficits.

Minister Moyo took to the stage with a clear message: Zimbabwe is open for business in energy. “Zimbabwe’s energy sector offers numerous opportunities for investment and partnership, especially for the private sector players and financiers gathered here,” he said.

“While the challenges are significant, the potential rewards—both in terms of impact and returns—are equally substantial.”

At the heart of his presentation was Zimbabwe’s Energy Compact, a strategic roadmap aimed at deep energy sector reforms, policy modernization, and renewed investor confidence. Minister Moyo reaffirmed government commitment to restructuring the country’s power utility, ZESA Holdings, and rolling out regulatory frameworks that support private sector participation.

He stressed that Zimbabwe is actively engineering an investment-friendly environment—beyond rhetoric—by enacting reforms that reduce risk and ensure policy clarity.

“Each of these opportunities is underpinned by the reform measures I mentioned earlier—from regulatory changes that allow private power sales, to government agreements that de-risk projects,” the minister explained. “In other words, we are not only identifying opportunities; we are actively creating the conditions for these opportunities to be realized.”

Renewable energy featured prominently in his call to action. Zimbabwe, he said, is sitting on enormous potential in solar, wind, hydro, biomass, and waste-to-energy—resources that remain largely underutilized.

“For example, our solar irradiation levels are among the highest in the world, offering excellent conditions for solar PV and solar thermal power plants,” he said. “Similarly, there are untapped small-hydro sites and strong wind corridors. Investment in these renewables can provide clean power domestically and potentially for export.”

Minister Moyo highlighted Zimbabwe’s strategic geographic position as a gateway to regional power markets, particularly through the Southern African Power Pool (SAPP). This allows investors to develop projects in Zimbabwe not only to meet growing local demand but also to export power into neighboring countries, taking advantage of peak and off-peak demand cycles. “We are geographically positioned to benefit from regional electricity interconnections. Strengthening interconnection with neighboring countries opens opportunities to trade power across borders and improve regional energy security.”

To support long-term energy sustainability, the government is implementing the National Integration Plan, which focuses on building capacity in renewable energy, streamlining procurement processes, and creating a coherent national strategy. Minister Moyo noted that ongoing updates to energy policies will align the country with modern energy governance standards and investor expectations.

Crucially, Zimbabwe is not just eyeing large-scale generation projects. It is also promoting localized solutions that empower communities and small enterprises. The minister spotlighted the importance of independent and captive power producers, along with innovative models such as pay-as-you-go systems to accelerate rural electrification. “There is potential to establish local assembly or manufacturing of solar components, batteries, and other equipment, which can create jobs and reduce costs,” he added. “We are also keen to foster innovation hubs and energy entrepreneurship, including enterprises led by women and youth, and to ensure the energy transition is inclusive and taps into local talent.”

Addressing the state of the current infrastructure, Minister Moyo acknowledged the urgent need to rehabilitate aging generation and distribution systems. Zimbabwe’s existing power stations, grid lines, and distribution networks are in need of modernization.

“Projects to upgrade aging power stations, reinforce the grid, reduce losses, and roll out smart grid technologies offer considerable investment opportunities with the benefit of quick wins in terms of improved efficiency and reliability,” he said. “Such projects, often in partnership with the utility, can yield steady returns and are critical for maximizing the utilization of new generation capacity.”

During his presentation of the Zimbabwe Energy Compact, Minister Moyo engaged in robust discussions with key private sector players, focusing on financing structures, implementation models, and pathways to macroeconomic stability that support energy investment. He emphasized that Zimbabwe is looking beyond traditional investors, welcoming philanthropic capital, pension funds, and blended finance structures that can scale energy solutions sustainably.

Minister Moyo’s call for partnerships is more than a pitch—it signals a policy shift grounded in realism and a clear desire to engage with credible global players. His message to the world was resolute: “We invite investors to take a fresh look at Zimbabwe’s energy sector and to partner with us in unlocking its full potential.”

With renewed political commitment, sweeping reforms underway, and abundant renewable resources, Zimbabwe is positioning itself for a new era of energy development—one powered by partnerships, innovation, and inclusive growth.