Innocent Mujeri
The 2025 National Budget, presented by the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, demonstrates a renewed commitment to addressing Zimbabwe's energy challenges through decisive investments and reforms. With ZiG259.8 million allocated to the Ministry of Energy and Power Development, Government has laid the groundwork for improving power generation, transmission, and distribution networks, as well as expanding rural electrification.
This budgetary commitment reflects an understanding of the critical role energy plays in driving economic growth, enhancing productivity, and improving livelihoods across the nation.
Zimbabwe’s energy sector has long struggled with a supply deficit, a challenge that has stifled industrial growth and negatively impacted daily life for citizens. In 2025, electricity generation is projected to increase by 10.6% to 10 000 GW, driven by the reliable performance of Hwange Units 7 and 8 and additional contributions from renewable energy initiatives spearheaded by Independent Power Producers (IPPs). However, with projected demand standing at 19 000 GW, a significant gap will persist, underscoring the urgent need for transformative solutions. Minister Ncube has responded with bold measures aimed at closing this gap, while positioning Zimbabwe as a leader in sustainable energy development.
Central to these reforms is the Government's decision to ease restrictions on self-generation of electricity. This policy shift empowers industries, businesses, and households to invest in their energy solutions, such as solar and wind systems. By decentralising energy production, this approach not only alleviates pressure on the national grid, but also enhances resilience and sustainability. For industries, particularly mining and manufacturing, self-generation ensures uninterrupted operations, reducing downtime and boosting output. The ripple effects will be felt across the economy, as reliable energy supply becomes a key enabler of growth and competitiveness.
In addition to self-generation, the budget emphasises public-private partnerships (PPPs) as a mechanism for mobilising resources and expertise. Minister Ncube highlighted ongoing efforts to attract private investment in large-scale energy projects, including renewable energy installations and thermal power plants. These partnerships are crucial for accelerating infrastructure development, as they bring in much-needed capital and technical knowledge. By leveraging PPPs, Zimbabwe can scale up its energy initiatives without overburdening public finances, ensuring a sustainable path to energy security.
The budget also places a strong emphasis on renewable energy. Recognising the vulnerability of hydroelectric power and aging thermal plants to environmental and operational challenges, Government is diversifying its energy mix. Solar energy, in particular, is identified as a game-changer, given Zimbabwe's abundant sunlight and the declining costs of solar technology. Government has already partnered with international development agencies to support the installation of solar farms and mini-grids in remote areas, bringing electricity to communities that have long been off the grid. These projects not only boost grid capacity, but also create jobs and foster innovation in the renewable energy sector.
Another critical aspect of Government's strategy is rural electrification. Through initiatives supported by the Rural Electrification Fund and international donors, Government is extending grid access and deploying mini-grid solar systems to underserved communities. The Climate Adaptation Water, Energy Programme (CAWEP), for instance, has already provided solar home kits, biogas digesters, and solar streetlights in rural districts. These efforts will be scaled up in 2025, reflecting the Government’s commitment to ensuring that no part of Zimbabwe is left behind in the energy transition.
The allocation of resources for modernising energy infrastructure is another highlight of the budget. Upgrading transmission and distribution networks is essential for reducing energy losses and ensuring that generated power reaches end users efficiently. Modern infrastructure will also facilitate the integration of renewable energy sources, paving the way for a more flexible and robust energy system. These improvements are not just technical necessities; they are critical for building public confidence in the reliability of Zimbabwe's energy sector.
The social impact of these reforms cannot be overstated. Access to reliable electricity is a cornerstone of improved quality of life, enabling better healthcare, education, and communication services. For rural communities, electrification can be transformative, powering schools, clinics, and small businesses that drive local development. Government’s focus on expanding access underscores its commitment to inclusive growth, ensuring that the benefits of energy security are shared equitably.
However, achieving these ambitious goals will require more than policy changes and budget allocations. Effective implementation, accountability, and collaboration among stakeholders are essential. The Ministry of Energy and Power Development must work closely with private investors, development partners, and local communities to ensure timely delivery of projects and efficient use of resources. Transparency in fund utilisation and a clear regulatory framework will be critical for maintaining investor confidence and public trust.
Zimbabwe’s reforms also align with broader regional and global trends in energy cooperation and sustainability. As a central player in the Southern African Development Community (SADC), Zimbabwe has the potential to become a net exporter of electricity, strengthening its geopolitical influence and foreign currency reserves. The emphasis on renewable energy positions the country to benefit from international climate finance, with many investors prioritising green projects that align with global environmental goals.
The 2025 National Budget represents a bold and visionary approach to energy security. By prioritising self-generation, encouraging private-sector participation, and investing in renewable energy and rural electrification, Government is addressing immediate challenges while laying the groundwork for long-term growth and sustainability. With effective implementation, Zimbabwe can transform its energy landscape, powering progress for generations to come.
