By Zim GBC News Harare Correspondent
HARARE – Zimbabwe requires a staggering US$10 billion investment to boost power generation and end crippling electricity shortages, a new report by policy think-tank Veritas has revealed. The country’s energy crisis has left households and industries struggling, with the poor bearing the brunt of prolonged load-shedding.
Currently, Zimbabwe generates only 1,400 MW against a demand of 4,000 MW, forcing businesses and wealthier households to turn to expensive alternatives like solar, diesel generators, and windmills. However, Veritas warns that low-income families remain excluded from these solutions, deepening inequality.
A Debt-Strapped Nation Struggles to Keep the Lights On
With a US$21.5 billion debt burden—nearly half of its GDP—Zimbabwe faces hurdles in securing funding for new power projects. Finance Minister Prof. Mthuli Ncube recently acknowledged that the government can only make token payments to creditors like the World Bank and Paris Club, limiting access to fresh loans for infrastructure.
“Zimbabwe will need as much as US$10 billion to invest in energy production over the next decade to avert the ongoing crisis,” the Veritas report stated.
“Poor working-class and peasant families, who cannot afford private solutions, are suffering the most.”
Over-Reliance on Kariba and Hwange
Zimbabwe’s power supply heavily depends on the 1,050 MW Kariba South Hydro and Hwange Thermal Station, which was upgraded in 2023 under a US$1.5 billion Chinese loan. However, droughts have repeatedly crippled Kariba’s output, while Hwange’s aging infrastructure struggles with breakdowns.
“Water levels at Kariba improved this year, but the country still faces a massive deficit,” the report noted.
“Electricity from private sources is more expensive, driving up production costs for businesses.”
Failed Projects and Stalled Solar Plans
Several initiatives meant to ease the crisis have faltered:
- The US$200 million Dema Diesel Plant, commissioned in 2016, remains unused due to high operational costs.
- The Gwanda Solar Project, awarded to Wicknell Chivayo’s Intratek Zimbabwe, has stalled despite a US$5 million advance payment
- Private players like Centragrid, Zimplats, and Econet’s DPA have launched solar projects, but these mostly serve their own needs.
Urgent Call for a New Energy Policy
Veritas urged the government to:
✅ Diversify the energy mix with solar, wind, and hydro projects like Batoka Gorge.
✅ Encourage private solar adoption through incentives.
✅ Mobilise domestic funding, including pension funds, for energy projects.
✅ Draft a clear transition plan balancing coal use (as a short-term fix) with green energy.
“Most multilateral funders now favour clean energy,” the report noted.
“Zimbabwe must align with global climate finance trends while addressing immediate needs.”
Government Responds
In his 2025 budget review, Finance Minister Ncube highlighted progress in off-grid solar adoption, estimating 86 MW of private generation. He also reaffirmed commitments to expand rural electrification through the Rural Electrification Agency.
What’s Next?
Without urgent investment, Zimbabwe’s power crisis will persist, further straining the economy. Stakeholders are calling for an inclusive energy policy to ensure long-term solutions.
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