Zimbabwe, Zambia inject US$440 million to kickstart Batoka project

STAFF WRITER

The governments of Zimbabwe and Zambia have agreed to inject a combined US$440 million to kick-start construction of the US$4.2 billion Batoka Gorge Hydro-Electric Scheme, reviving a long-delayed power project seen as critical to regional energy security.

The two governments will each inject US$220 million in equity, following a meeting of the Zambezi River Authority Council of Ministers on Monday in Victoria Falls.
The funding will support early works under a Public-Private Partnership structure, with project timelines to be reviewed to speed up implementation.
Zimbabwe’s Energy and Power Development Minister July Moyo, who will chair the council in 2026, said the equity contributions are intended to improve the project’s bankability and attract private capital.
“COM reaffirmed the adoption of a Public-Private Partnership model and approved a US$220 million equity contribution by each Government, including exploration of equity partnerships to enhance bankability. This allocation will be for the BGHES dam construction for the budget cycle beginning 2026 over flexible timelines,” he said.

The council said feasibility studies have been updated and additional financial and technical advisers engaged as the project moves toward financial close. A Resource Mobilisation Committee, chaired by the two countries’ finance ministers, has been formed to raise funding for public infrastructure linked to the scheme.
The Batoka Gorge project will be jointly owned by Zimbabwe and Zambia and is expected to add significant generation capacity to both power grids once completed.
The ministers also reviewed other projects under the Zambezi River Authority, including the 600-megawatt Kariba floating solar plant, with the first 150 megawatts due for commissioning in mid-2026, and progress on the Kariba Dam Rehabilitation Project.