ZESA Holdings Executive Chairman, Sydney Gata, has stated that the recent adjustments to electricity tariffs to better reflect the actual cost of power have led to a surge in investments in Zimbabwe’s energy sector, offering hope for a resolution to the country’s ongoing power crisis.
During his address at the inaugural Zimbabwe-Zambia (Zim-Zam) Energy Projects Summit in Victoria Falls, Gata explained that the tariff changes, implemented in December, have encouraged new investments in the energy sector. He remarked, “Following the correction of tariffs, we engaged industries, particularly mining, and encouraged them to invest in electricity infrastructure.”
Gata emphasized that the mining sector, in particular, was advised to stop relying solely on government support for managing energy-related risks. The response from the mining industry has been positive, with many eager to take on this new responsibility.
He further pointed out that Zimbabwe’s current energy demand stands at approximately 700 megawatts, with projections indicating that within three to five years, the country will need up to 2,000 megawatts—far beyond its current generation capacity.
To address this shortfall, several energy projects are set to begin next year. These include the refurbishment of coal-fired plants by Jindal Steel and Power, as well as the development of solar power projects by companies such as Tsingshan Holding Group’s Afrochine Smelting and PPC.
These efforts are part of a broader initiative to mitigate the ongoing power shortages, which have been worsened by a severe drought that has significantly reduced hydroelectric output at the Kariba Dam. Currently, the Kariba power station is functioning at just 10% of its capacity, contributing to a national power generation total of 1,273.5 megawatts—about half of the country’s required demand.
The mining sector, which continues to grow at an average rate of 9% annually, has been a significant contributor to the rising demand for power. Isaac Kwesu, CEO of the Zimbabwe Chamber of Mines, highlighted that sectors such as lithium, coal, and steel are driving this growth.
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