Zimbabwe opens electricity retail to private players
Zimbabwe has opened its electricity retail and distribution sector to private companies as part of efforts to achieve universal power access by 2030. The Zimbabwe Energy Regulatory Authority announced on Thursday that the government had approved the policy change to attract investment and enhance service delivery. Private firms will need to demonstrate they have adequate technical and financial resources to operate retail electricity systems in accordance with national regulations. The new participants will focus on underserved and developing residential zones while working alongside the state-owned Zimbabwe Electricity Transmission and Distribution Company.
The shift aims to accelerate infrastructure development, reduce government spending, and bring renewable energy into the national grid. Section 44 of the Electricity Act provides the legal framework for private investment in secondary distribution networks. Zimbabwe faces ongoing power shortages from outdated equipment, limited generation capacity, and rising demand. Load shedding has hurt productivity and raised business costs across the mining, agriculture, and manufacturing sectors, which depend on reliable electricity for growth.
