Zimbabwe unveils National Energy Compact, courts global investors

STAFF WRITER

Zimbabwe on Thursday unveiled its National Energy Compact, positioning itself as a serious player in Africa’s energy transformation agenda and signalling its intent to attract global investment into the sector.

Energy and Power Development Minister July Moyo presented the blueprint before international financiers and investors at the Africa Capital Markets Forum in Johannesburg, South Africa.

The high-level platform brought together three African countries—Kenya, Ghana, and Zimbabwe—to showcase their respective national energy frameworks, highlight investment opportunities, and align their programmes with Africa’s broader sustainable development goals.

“This is an honour for Zimbabwe,” Minister Moyo told delegates.
“Our compact is built on five pillars, consistent with the agreements reached at the Dar es Salaam Summit earlier this year. Following that summit, we made sure the compact was both locally embraced and enriched through contributions from the international community.”

Moyo said the government had prioritised inclusivity and broad ownership of the compact during its formulation. More than 200 stakeholders, drawn from the private sector, government, and development partners, including the World Bank, African Development Bank (AfDB), and United Nations agencies, participated in extensive consultations.

“The compact represents our shared vision for sustainable energy development,” Moyo said.
“It was strengthened through dialogue, ensuring alignment with national priorities and global frameworks such as Sustainable Development Goal 7 (Affordable and Clean Energy).”

He said the framework focuses on energy access, renewable generation, regulatory reform, and investment facilitation, all critical to powering Zimbabwe’s industrial growth and improving livelihoods.

In a move aimed at catalysing private investment and strengthening industrial resilience, the government has introduced a policy compelling large energy consumers to develop their own captive power facilities within two years.

“To support economic growth, we have created a window requiring large consumers to build their own generation capacity, whether solar or thermal,” Moyo said.
“Many private sector companies have already begun developing these facilities, working alongside Independent Power Producers (IPPs).”

He added that the government had reserved dedicated electricity supply for over 21,000 hectares of wheat production across the country, guaranteeing consistent energy for agriculture—one of the cornerstones of food security and economic stability.

Addressing the long-standing problem of unpowered housing developments, commonly referred to as “Dark Cities,” Moyo said the government had identified 371 unreticulated settlements and was now licensing private players to bring them onto the national grid.

“Private investors will be allowed to develop the required infrastructure and recover their investment through our prepaid billing model,” he explained.
“Electricity may initially be supplied through alternative sources, such as solar mini-grids, until full grid connection is achieved.”

He added that this public-private-community model has already proven effective, with bank-financed rural projects successfully delivering power to households for the first time.

“It’s proof that when government, business, and financiers work together, no community should remain in the dark,” Moyo said.

Zimbabwe’s energy regulator has rolled out a suite of investment incentives designed to accelerate growth in the renewable energy sector.

Developers can now import equipment tax-free, benefit from VAT deferments, and apply for National Project Status—a designation that ensures priority processing and additional fiscal advantages.

“License fees for renewable projects have been significantly reduced,” Moyo said.
“And to mitigate risk, the Government Implementation Support Agreement ensures that if an off-taker defaults, the government intervenes. This gives investors confidence to commit capital and scale operations.”

According to the minister, these policy shifts are already attracting growing interest from both local and international investors, particularly in solar, hydro, and biomass projects.