Harare — Zimbabwe has signed a $455 million, 15-year concession agreement with Jindal Africa, a unit of India’s Jindal Steel, to refurbish six ageing units at the Hwange thermal power station, Energy Minister July Moyo announced on Tuesday.
Moyo said the refurbishment project, which will cover units built in the 1980s, is expected to take four years. He told reporters at a post-cabinet briefing that Jindal Africa would recoup its investment through revenue generated by electricity sales from the power station.
Hwange, with an installed capacity of 1,520 megawatts (MW), is Zimbabwe’s largest coal-fired power plant. In 2023, the station was partially modernised when two new units were commissioned, adding 600 MW to the national grid. However, the older sections of the plant remain unreliable, producing only about a third of their intended capacity due to frequent breakdowns.
Zimbabwe currently generates only about 1,000 MW of electricity, half of its estimated demand of 2,000 MW. The shortfall has forced the country to implement regular power cuts, which have affected households, industries, and businesses across the nation.
The Hwange refurbishment comes as part of broader efforts to stabilise the energy sector. The Kariba hydropower station, which contributes up to 1,050 MW following a 2018 upgrade, has also struggled in recent years due to declining water levels linked to drought, further straining supply.
“Refurbishing Hwange is critical for Zimbabwe’s energy security,” Moyo said. “The agreement with Jindal Africa will not only restore lost capacity but also extend the lifespan of the country’s largest power station.”
Energy experts say the concession model allows private investors to participate in infrastructure recovery without immediate strain on government finances. By funding the refurbishment upfront, Jindal Africa will take on operational responsibility and recover costs from electricity revenue during the 15-year period.
The government hopes the deal will significantly reduce the country’s reliance on power imports from neighbouring countries such as South Africa and Mozambique. With refurbishment complete, Hwange is expected to return closer to full capacity, easing shortages and supporting economic recovery.
