This new event dedicated to energy investment in Zimbabwe and Zambia will take place from 18-20 November 2024 at the stunning Victoria Falls, Zimbabwe. 

Edington Mazambani, Chief Executive Officer of the Zimbabwe Energy Regulatory Authority (ZERA), talks to EnergyNet about the pivotal role of the southern region for Africa, and why now is the time to unlock its potential for growth, innovation, and collaboration.    
 

Why is this summit so important? 

This summit will provide a platform for Zimbabwe and Zambia to showcase the investment opportunities in their respective energy sectors to international investors from around the world. It aligns with the significant economic progress which Zimbabwe has witnessed since the inception of the Second Republic, and it is also pivotal for Zimbabwe at this stage.

We are looking at energy not only as a necessity, but as critical enabler for us to achieve sustainable development. As a country, our vision is to become a prosperous and empowered upper-middle-income society by 2030. We need the energy resources to power this vision, and we are focusing on sustainable energy.  

The whole world is transitioning from fossil fuel to cleaner forms of energy. The Zimbabwe-Zambia Energy Projects Summit is a platform to help us to attract investments towards that shift.
 

Why now? 

We've been facing an energy deficit as a country and a region. 

While we do have some pockets of excess power, the situation has worsened significantly in the last year due to El Nino.
 
Our two countries share an infrastructure for hydropower generation, but we have seen a capacity of 1,050 megawatts reduced to less than 200 megawatts per day.  

The situation is critical. With huge energy deficits within the region, Zambia and Zimbabwe are particularly affected by the drought, which has resulted in water rationing in Lake Kariba.  

This summit comes at a time when we must strategically prioritize renewable energy, such as solar and wind, as alternative energy sources that can offer resilience against climate-related disruption.  

We are also seeing a huge increase in the demand for power from key industry sectors, particularly mining, manufacturing, and agriculture.  

We need to focus on renewables for a more stable and sustainable energy future. 
 

What’s happening in the next 10 years in the energy sector in Zimbabwe that people should be excited about?

Zimbabwe holds significant strategic importance due to its location within the Southern African Development Community (SADC). 

Our goal is to become the regional energy hub for grid connectivity across the region.

We want to advance our technology and infrastructure to achieve this, which we believe will drive robust economic growth.

To avoid creating a bottleneck in the region, it’s crucial that Zimbabwe, being centrally positioned, upgrades its technological infrastructure, especially within the electricity network.

We are looking to transform our grid into a smart grid, making it more resilient and capable of supporting the numerous projects planned throughout the region.

For instance, consider the much-discussed Grand Inga Dam.  For South Africa to access its power, a seamless connection through Zimbabwe is required. 

The potential to light up the entire continent is immense, but for southern Africa to benefit, the electricity must flow from the DRC through Zambia and then into Zimbabwe. From here, you can connect to Botswana, South Africa, Mozambique and Namibia.

So, it is very important that in the next ten years and beyond, Zimbabwe works to reinforce its grid connectivity.

There is also the Batoka Gorge Hydropower Project, set to generate 2400 MW. This power will be shared equally between Zambia and Zimbabwe.

As well as enhancing energy security, we expect that this capacity will create jobs and underpin economic growth for both countries.  
  
Zimbabwe also has significant potential thanks to its vast lithium resources, which position it as a hub for battery storage manufacturing. 

We are already receiving inquiries about this and envisage Zimbabwe playing a significant role in over the next ten years.

Plus, with the recent discovery of natural gas reserves in the country's northern region, we anticipate the development of more gas-to-electricity projects, which will help rural communities transition away from using firewood.

We look forward many exciting developments in the next ten years and beyond. And with SDGs in mind, we need to accelerate our development trajectory in the energy sector to ensure universal access to modern energy services by 2030.   

 It’s a challenging task, but we’re working with this goal always in mind to achieve success.
 

As the regulator, what are you doing to promote to and encourage new investors?   

We've already launched initiatives and incentives as part of the country's Renewable Energy Policy, including tax holidays. 

After these tax breaks end, projects enjoy a lower tax rate of 15%, compared to the standard 25%.

Renewable energy projects have also been given National Project Status, which makes it easier to import capital goods into the country and provides benefits on duties and levies. 

Plus, they qualify for Prescribed Asset Status, which means they can attract investment from the local insurance sector, which has already led to significant involvement from one of the biggest insurers in Zimbabwe in several renewable energy projects.

We’re continuing to refine our regulatory approach. 

Zimbabwe was among the first five African countries selected by the African Forum for Utility Regulators (AFUR) to pioneer a tool for setting tariffs on off-grid energy systems.

With 2030 fast approaching, we see off-grid solutions playing a crucial role in bringing electricity to areas where the main grid is unlikely to reach soon. 

However, these systems should be designed to integrate seamlessly with the grid when it eventually arrives.  

Mini-grids and microgrids have often been developed by NGOs to empower communities, but there has been little private investment in this area. 

The tariff-setting tool aims to change this by making mini-grids viable business opportunities. 

By creating attractive tariffs, we hope to draw private capital into off-grid projects and boost rural electrification too.

What is the link between Zimbabwe and Zambia when it comes to energy? 

We have a historical link, in that both countries used to be part of the Federation of Rhodesia and Nyasaland, which was when the Kariba Dam was constructed. 

Kariba supplies hydroelectric power to both Zambia and Zimbabwe, which we share 50/50.  

Plus, we also both belong to the Southern African Development Community.  

Zimbabwe is really at the centre of that community and, together with Zambia, we can play a significant role in its power sector.  
 

What are you most excited about for November, and what message would you like to send out on behalf of ZERA?

It’s very exciting to be in a position to match the two countries to international investors, sharing ideas and working to get international capital into our region.
  
I also look forward to benefiting from EnergyNet’s extensive network and experience in conferencing, so that we have good quality partnerships that can help us as a region in terms of investments into the energy space, focusing on renewables and the reinforcement of the grid network in both Zimbabwe and Zambia.  

 As we stand on the brink of a transformative era in energy, the Zimbabwe-Zambia Energy Projects Summit embodies our commitment to a sustainable future. 

Together, we will explore the vast opportunities in renewables, modernize our grids, and ensure energy access for all.

 Let us unite in our vision to power Zimbabwe and Zambia’s sustainable energy future, unlocking potential for growth, innovation, and collaboration. 

 

With thanks to: Edington Mazambani, Chief Executive Officer, Zimbabwe Energy Regulatory Authority (ZERA)