Plans to refurbish Hwange Thermal Power Station’s ageing Units 1 to 6 are close to being finalised, with the project awaiting approval from Zimbabwe’s Cabinet.
This initiative, being carried out through a rehabilitate-operate-and-transfer (ROT) agreement between ZESA and Jindal Africa, aims to significantly raise the station’s output from 340 MW to 800 MW.
Mutapa Investment Fund CEO, Dr John Mangudya, confirmed that all necessary technical and commercial agreements are now under review by the Public-Private Partnership (PPP) Committee, a Cabinet sub-committee led by the Minister of Finance. Once cleared, the documents will be forwarded to the full Cabinet for final endorsement.
ZESA, which falls under the portfolio of the Mutapa Investment Fund, Zimbabwe’s sovereign wealth fund, is set to benefit from this transformative project. Dr. Mangudya emphasised the importance of the upgrade, stating that once approved, the project will significantly contribute to energy security.
Meanwhile, ZESA has commenced rehabilitation works on Unit 5, the most productive of the old units, using its own resources, ensuring that progress continues while awaiting formal approval.
This rehabilitation complements the recently added Units 7 and 8, which began operations in 2023 and now supply 600 MW to the national grid.
The Hwange re-powering effort is part of a broader push for energy stability that includes expanding private sector involvement. Efforts are underway to roll out smart and prepaid metering, net metering, and revive stalled Independent Power Producer (IPP) projects.
With electricity tariffs now adjusted to around US$0.1608 per kilowatt hour, above the 9–10 US cents needed for most IPPs to be viable, conditions have become more favourable for private energy investments.
To further support private sector involvement, the government is working on financial guarantees to mitigate investment risks, including securing loan repayments and ensuring capital repatriation for both local and international financiers.
Zimbabwe continues to grapple with recurring electricity shortages due to ageing power infrastructure and funding limitations. With the repowering of Hwange and fresh momentum behind IPP initiatives, the country is optimistic about moving closer to a reliable and sustainable electricity supply.
