The Herald reports that the Zimbabwean government's approval of private sector participation in electricity retailing and distribution marks a significant policy shift in the electricity sector, aimed at accelerating the achievement of the 2030 electricity access target.
The Zimbabwe Energy Regulatory Authority (ZERA) announced that this move will attract private investment, improve service quality, and invites stakeholders to participate.
According to Section 44 of the Electricity Act, the core of the policy is to attract investment in secondary distribution infrastructure, improve power supply efficiency, and expand coverage in underserved areas. Licensed private companies will collaborate with the Zimbabwe Transmission and Distribution Corporation (ZETDC) in areas such as emerging residential areas to supplement the power grid. Applicants must possess technical and financial capabilities and comply with regulations.
For the past decade, Zimbabwe has faced persistent power shortages due to aging infrastructure and limited power generation capacity, with daily power outages exceeding five hours, hindering industrial development. The new policy is expected to boost infrastructure development, reduce government costs, and facilitate the grid connection of renewable energy, providing support for key industries such as mining and agriculture, as well as public services, thus solidifying the foundation of the national development strategy.
