HARARE – Despite Zimbabwe licensing over 100 independent power producers (IPPs), the sector contributes a mere 4% to the national grid, as most projects remain stalled due to challenges in securing funding.
Industry stakeholders attribute the financing hurdles to persistent uncertainties surrounding power tariffs and currency volatility.
The issue was brought into focus ahead of the upcoming EU-Zimbabwe Business Forum scheduled for May 20–22, where Germany is expected to lead discussions on accelerating the implementation of renewable energy projects.
German Chargé d’Affaires Michael Ott emphasised his country’s commitment to supporting Zimbabwe’s energy development but also pointed to a significant obstacle for potential investors—corruption risk.
Zimbabwe has licensed more than 100 independent power producers, yet IPPs contribute just 4% to the grid. This is because projects struggle to secure financing to get off the ground, due to uncertainty over power tariffs and currency.
At the EU-Zimbabwe Business Forum on May… https://t.co/9WbQEEgo7t pic.twitter.com/tVeq1VdOJw
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“Beyond financing difficulties, concerns over transparency and governance continue to deter German and other European investors,” Ott said.
The forum is expected to convene business leaders, policymakers, and investors to explore opportunities for collaboration, with energy seen as a priority sector for growth and sustainability.
