BULAWAYO, Zimbabwe – Chinese company Yuanlin Energy Investments has announced plans to construct a 600-megawatt (MW) power station in Binga, Matabeleland North Province, in a major energy investment initiative worth an estimated US$2 billion.
Named the Kalungwizi Power Station, the project is set to become one of the largest private sector-led energy developments in Zimbabwe in recent years. It is expected to significantly boost the country’s electricity generation capacity, helping to ease chronic power shortages that have long hampered industrial growth and economic recovery efforts.
Preparatory work is already underway, with the Environmental and Social Impact Assessment (ESIA) process having officially commenced. The ESIA is a critical step required by Zimbabwean law before construction can begin, aimed at assessing the potential environmental, economic, and social effects of the project on local communities and ecosystems.
According to Yuanlin Energy Investments, the Kalungwizi project will involve the development of both generation and transmission infrastructure. It will include the construction of associated facilities such as substations, transmission lines, access roads, and worker accommodation camps. Local stakeholders have been invited to participate in public consultations, which will form part of the ESIA review process.
Officials say the project is poised to create hundreds of jobs during the construction phase and generate long-term employment opportunities for local residents once operational. It is also expected to stimulate ancillary industries such as transport, services, and supply chain businesses in the Binga district and beyond.
Zimbabwe’s power generation has remained constrained for years, with ageing infrastructure at major plants like Kariba South and Hwange often struggling to meet growing demand. Government data shows that the country’s peak electricity demand exceeds 2,000MW, while current generation often falls below 1,500MW, leading to frequent power cuts across urban and rural areas.
Speaking on the sidelines of an investment promotion event in Bulawayo, officials from the Ministry of Energy and Power Development welcomed Yuanlin Energy’s investment, saying it aligns with Zimbabwe’s broader energy strategy to attract independent power producers (IPPs) and diversify its energy mix.
“The Kalungwizi Power Station will not only contribute to stabilising Zimbabwe’s electricity grid but also support regional integration efforts through potential power exports to neighbouring countries under the Southern African Power Pool (SAPP),” an official said.
Once completed, the Kalungwizi project could play a vital role in supporting Zimbabwe’s ambitions to become an upper-middle-income economy by 2030, as reliable energy supply is key to industrialisation and economic transformation.
Further details, including project timelines, funding structures, and technical partnerships, are expected to be released following the conclusion of the environmental assessment.
