Zimbabwe’s power generation and distribution sector has received a major boost following the Government’s approval for private players to participate in the retailing and distribution of electricity.
This marks a landmark policy shift expected to fast-track the national goal of achieving universal access to electricity by 2030.
Reliable and sufficient power generation remains central to Zimbabwe’s industrialisation, economic growth and social development agenda.
Energy is the lifeblood of productive sectors such as mining, agriculture and manufacturing, and is essential for driving new investments under the National Development Strategy 1 (NDS1).
Electricity also underpins the delivery of critical public services such as healthcare, education, and water supply, all of which are key to improving the quality of life and achieving Vision 2030.
Over the past decade, Zimbabwe has had power challenges caused by ageing infrastructure, limited generation capacity and rising demand from an expanding economy.
These challenges have contributed to periodic load-shedding, reduced industrial productivity and higher operating costs for businesses.
The latest policy reform, which opens the electricity retail and distribution space to private participation, is expected to decentralise the sector, improve operational efficiency and attract fresh investment to strengthen generation, transmission and distribution capacity.
Authorities emphasise that the reform is not about competition, but about energy security, reliability and economic transformation.
In a notice on Thursday, the Zimbabwe Energy Regulatory Authority (ZERA) said the liberalisation of the electricity retail space was designed to complement existing efforts to ensure universal electricity access.
“The Government of Zimbabwe has approved the participation of private players in the retailing and distribution of electricity to consumers, to complement ongoing efforts to achieve universal access to electricity by 2030,” reads part of the notice.
“Following this development, the Zimbabwe Energy Regulatory Authority (ZERA) and the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) would like to invite the public and all stakeholders for increased participation in the distribution and retail of electricity in Zimbabwe.”
According to ZERA, the new framework seeks to attract investment in secondary electricity distribution infrastructure in terms of Section 44 of the Electricity Act, with a strong focus on improving efficiency and extending coverage to underserved areas.
“The move aims to attract investments in electricity secondary distribution infrastructure in terms of Section 44 of the Electricity Act, with a focus on improving efficiency in the supply of electricity to households,” said ZERA.
It is envisaged that private sector participation will accelerate infrastructure development, reduce fiscal pressure on the Government, and integrate renewable energy sources into the national grid.
“It is envisaged that new investments will facilitate rapid infrastructure development, with reduced costs to Government, whilst integrating renewable energy sources into the national grid,” the statement added.
Under the new model, private companies will be licensed to distribute and retail electricity, particularly in new residential and underserved areas, working in partnership with ZETDC to expand the national electricity footprint.
“Private companies will be licenced to distribute and retail electricity in underserved areas, complementing the work of ZETDC.”
To qualify, potential licencees must demonstrate both technical and financial capacity to develop, operate, and manage electricity retail systems in line with Zimbabwe’s regulatory requirements.
“Potential licensees must demonstrate technical and financial capacity to develop, operate, and retail electricity, and comply with the country’s statutes, regulatory standards and guidelines,” ZERA noted.
Private distributors will also collaborate with ZETDC in the development of backbone infrastructure, such as transmission lines and substations, to service new residential and commercial developments.
“Potential licensees will collaborate with ZETDC to provide electricity backbone infrastructure (transmission line and sub-station) into new residential developments,” ZERA said.
Authorities expect the liberalisation of the electricity market to deliver multiple benefits, including improved service delivery, increased access, and enhanced efficiency in power distribution.
Expected outcomes include better electricity supply, reduced costs, improved operational efficiency and greater integration of renewable energy into the national grid.
The reform aligns with the Government’s Vision 2030, which seeks to transform Zimbabwe into an upper-middle-income economy through sustainable industrialisation and innovation.
By opening the electricity sector to private players, Zimbabwe joins several regional economies embracing public-private partnerships to meet growing energy demands while promoting sustainability and investment in renewable energy.
To support this drive, the Government has introduced fiscal incentives to attract investors into alternative energy sources.
Already, several corporations in Zimbabwe have developed their own solar power projects to ensure a consistent power supply and cut long-term energy costs.
For instance, Caledonia Mining Corporation has integrated solar power into its operations to improve reliability, while Schweppes Zimbabwe has installed solar systems to maintain uninterrupted production.
Large-scale mining operations such as Zimplats and Bikita Minerals have also incorporated solar energy into their mix.
The telecommunications sector has followed suit, with Econet Wireless Zimbabwe launching a 466kW industrial solar plant at its Willowvale complex in Harare, spearheaded by its subsidiary Distributed Power Africa (DPA).
Other major firms, including agro-processing giant Tongaat Hulett, horticultural producer Nhimbe Fresh, and petroleum company Puma Energy, have also invested in solar solutions as part of their broader sustainability strategies.