MASVINGO – The 5MW Great Zimbabwe Hydropower Project has been officially commissioned at the Mutirikwi Dam, marking a significant milestone for local and foreign investors aiming to establish independent power projects in Zimbabwe.
The mini-hydropower facility, according to NewZwire was funded through a combination of local pension funds and foreign capital and is expected to contribute to easing Zimbabwe’s persistent energy shortages.
“The successful completion of the Great Zimbabwe Hydro Power Plant is a testament to the power of public-private partnerships in driving economic development,” said Samuel Matsekete, CEO of Old Mutual Zimbabwe. The financial services firm invested in the project through Old Mutual Life Assurance and recently launched a $100 million private equity fund targeting renewable energy projects.
The project attracted a diverse pool of investors, including the Public Service Pension Fund, ZB Financial Holdings, Frontier Energy, MOL Power, and the Danish Investment Fund. Local contractors such as JR Goddard and Masimba Holdings played key roles in its construction.
“This project is a remarkable achievement and an important milestone for our country,” said Memory Mashingaidze, co-founder and Executive Director of Great Zimbabwe Hydro Power and MOL Power. “We now transition from construction to operations with optimism for Zimbabwe’s energy future.”
Frontier Energy, making its debut in Zimbabwe with this project, highlighted its commitment to expanding renewable energy in the country. “We hope and expect to participate in many more renewable energy projects in Zimbabwe, contributing to the expansion of the country’s power generation capacity,” said Kim Gredsted, a founding partner of Frontier Energy.
Zimbabwe has faced a deepening power crisis due to years of underinvestment in new generation capacity. Efforts to attract Independent Power Producers (IPPs) have been hindered by concerns over low tariffs and currency instability. However, government measures, such as a tariff guarantee of US 9 cents per kilowatt hour granted to ten IPPs earlier this year, aim to accelerate green energy projects with a combined potential of 271MW.
The Great Zimbabwe Hydropower Project, featuring two 2.7MW Francis turbines for a total output of 5.4MW, is one of the beneficiaries of these reforms.
The successful commissioning of the plant provides a boost to investors seeking capital for similar projects, showcasing the viability of renewable energy initiatives in Zimbabwe.
“This project underscores the importance of sustainable partnerships between local and international players to address Zimbabwe’s energy needs,” said Matsekete.
Ahead of the commissioning, ZESA, Zimbabwe’s electricity utility, announced power cuts in parts of Masvingo province to facilitate the plant’s connection to the national grid.
The project’s completion has been celebrated as a model for future renewable energy developments in Zimbabwe, providing a glimmer of hope amid the country’s ongoing power challenges.