WASHINGTON, D.C. – Zimbabwe has stepped up efforts to attract new investments in its energy sector during the International Monetary Fund (IMF) and World Bank Spring Meetings held in Washington this week, as the country battles to address its persistent power shortages.
Senior government officials used the platform to highlight opportunities within Zimbabwe’s energy landscape, emphasising the need for foreign direct investment to bolster the country’s electricity generation capacity.
Despite having licensed more than 100 Independent Power Producers (IPPs) with a combined potential to generate up to 8,000 megawatts (MW), only a fraction of that capacity has materialised. Currently, IPPs contribute a mere 4% to the national grid, exacerbating the country’s reliance on aging state-owned power infrastructure and costly electricity imports.
Government representatives acknowledged that currency instability and uncompetitive tariffs have deterred investors, raising concerns over the bankability and profitability of power projects. The volatility of the Zimbabwean dollar and uncertainties around tariff adjustments have made it difficult for investors to secure predictable returns on their investments.
In response to these challenges, Zimbabwe introduced policy reforms last year, including offering tariff guarantees pegged at nine US cents per kilowatt hour (kWh) for select projects. Authorities hope this measure will help de-risk investments and attract both regional and international energy developers.
“We are committed to creating a stable and attractive investment climate in the energy sector,” said Energy and Power Development Minister July Moyo in Washington. “Our focus is on unlocking private sector-led growth to meet rising domestic demand and support industrialisation.”
Zimbabwe’s current electricity demand exceeds available supply, resulting in frequent power cuts that hamper economic activity, especially in key sectors such as mining and manufacturing. The country’s main hydropower source, Kariba Dam, has also been affected by recurrent droughts linked to climate change, further straining the grid.
To diversify its energy mix, Zimbabwe is also seeking investment in solar, wind, and other renewable energy projects, with the aim of achieving energy self-sufficiency and reducing carbon emissions in line with global climate commitments.
Analysts say while recent policy adjustments are a positive step, broader macroeconomic reforms are essential to restore investor confidence and mobilise the billions of dollars needed for energy infrastructure expansion.
The meetings in Washington continue through the week, with Zimbabwe expected to engage potential investors, multilateral lenders, and development partners in side events focused on infrastructure financing and public-private partnerships.
