Cabinet has approved proposals allowing private-sector participation in the distribution and retail of electricity, a move intended to address chronic power shortages and accelerate infrastructure development.
The decision comes as government acknowledges the need for significant investments in grid upgrades and modernisation, which have historically been financed by the state.
According to Cabinet reports, “the opening up of the electricity supply industry to private-sector involvement is being necessitated by the need for huge investment as well as improved efficiency and the integration of renewable energy sources.”
Government believes that this new model will improve services, reduce costs, and facilitate rapid infrastructure development in underserved areas.
The framework for this new model is already supported by existing legislation. The Electricity Act (13:19) and the Zimbabwe Energy Regulatory Authority Act [Chapter 13:23] both provide for the licensing of secondary electricity distributors and retailers.
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The Zimbabwe Investment and Development Agency Act [Chapter 14:38] also facilitates investor participation.
A key part of the new strategy is mandating that electricity reticulation be provided as part of the cost of stands in new residential areas.
“Through a Statutory Instrument, a compliance certificate will only be issued to a property developer upon incorporation of electricity backbone infrastructure into residential developments,” the official document stated, highlighting a new approach to expanding the national grid.
Furthermore, the Zimbabwe Electricity Transmission and Distribution Company will partner with banking institutions to electrify communities, with banks recouping costs through ZETDC’s billing system.
For off-grid suburbs, government has approved an “Advanced Net Metering Strategy” in which the private sector will provide electricity through solar power, with the long-term goal of connecting these areas to the national grid.
Investors in this model will recover their costs via the ZETDC prepaid billing system. The strategy is expected to “facilitate expansion of electricity access to underserved areas and contribute to the goal of universal electricity access by 2030.”
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