Zimbabwe is set to increase its national electricity generation by 400 megawatts (MW) after signing a $455 million upgrade agreement for the Hwange Thermal Power Station, the country’s largest coal‑fired plant. The rehabilitation work is expected to begin in the first quarter of 2026 and will be carried out under a long‑term concession with an international partner.
Under a 15‑year concession deal with the Africa arm of India’s Jindal Steel and Power, Zimbabwe’s state‑owned power utility ZESA Holdings will refurbish ageing units at Hwange built in the 1980s that have been operating well below capacity due to wear and breakdowns.
“The 15‑year agreement with Jindal will lead to enhanced power generation, which will add 400 MW to our output within the next 48 months,” ZESA’s acting group CEO Engineer Cletus Nyachowe said.
The upgrade will involve replacing critical equipment such as turbines, generators and other core components in Units 1–6, restoring them to near‑original designed output and stabilising the national grid.
Addressing longstanding power challenges
Zimbabwe currently struggles to meet its electricity demand of around 2 000 MW, generating only about half of that due to ageing infrastructure and frequent plant outages. Extended power cuts have become common, affecting households, businesses and industrial operations.
Hwange Power Station, with a total installed capacity of about 1 520 MW, saw two new units added in 2023 that contributed an extra 600 MW to the grid. However, older units built between 1983 and 1989 had fallen into disrepair, producing far less than their potential.
According to reports, the plant’s rehabilitation is expected to lift output by about 400 MW over the next four years, making a notable dent in the power deficit and reducing Zimbabwe’s reliance on costly imports from neighbouring countries.
Economic and regional impact
The investment is not only vital for energy security but also for wider economic stability. Reliable electricity is a key requirement for industrial activity, mining operations and small business growth, all of which have been hindered by erratic supply. The upgrade could help attract domestic and foreign investment by boosting confidence in Zimbabwe’s infrastructure.
For the Southern African region, Zimbabwe’s move is being watched as a case study in tackling long‑standing power shortages that are common across many economies in the bloc.
Looking ahead, rehabilitation works under the concession agreement will be implemented on a rehabilitate‑operate‑transfer (ROT) basis, meaning Jindal will oversee operations, recover its investment through power sales, and transfer the upgraded units back to Zimbabwe over time.
Successfully boosting generation capacity by 400 MW over the next few years would mark a major milestone in Zimbabwe’s efforts to stabilise its power sector and support economic recovery.
