Source: Govt says to prioritise IPP power framework – herald
Nelson Gahadza
Zimpapers Business Hub
The Government will next year launch a competitive Independent Power Producer (IPP) procurement framework to transform the energy sector, boost investment and improve energy security in the country.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube, said the initiative was designed to enhance the energy market and encourage both domestic and international investment through a more liberalised and transparent approach.
“The new framework will be underpinned by several key measures, including the facilitation by the Government to ensure that all IPP procurement processes are open and competitive, with clear and transparent guidelines for participation.
“This is aimed at attracting reputable investors and fostering innovation in power generation,” he said in the 2026 strategy paper.
Over the years, IPPs in Zimbabwe have been struggling to attract significant private investment due to a combination of structural and regulatory challenges.
The country’s current available generation capacity is approximately 1 500 megawatts (MW) against a national demand of around 2 2000MW, especially in winter.
The shortfall is set to worsen significantly, as demand is projected to surpass 5 177MW by 2030, driven primarily by expansion in the energy-intensive mining, manufacturing and agriculture sectors.
As the power demand grows, the Government is, however, not resting on its laurels and has been pursuing various initiatives to promote investment in energy production to increase domestic generation capacity.
Minister Ncube said the Government, in collaboration with key energy stakeholders, would strengthen the independence and capacity of regulatory agencies to ensure fair treatment of all market participants.
“Streamlined regulatory and permitting processes are expected to reduce delays and uncertainties for new projects, while a dedicated IPP procurement office will coordinate all related activities and stakeholder engagement,” he said.
Analyst Tanaka Mapfumo said the plan to launch a competitive IPPs framework in 2026 promotes a diversified energy mix, prioritising investments in renewable energy sources like solar and hydro, which can reduce dependence on a single energy source and mitigate climate change risks.
“The framework will attract reputable investors and foster innovation in power generation, which could lead to an increase in energy production and help bridge the current deficit,” she said.
She noted that Zimbabwe’s energy sector has struggled to attract significant private investment due to structural and regulatory challenges; hence, the new framework will need to address these issues to succeed.
“The plan relies heavily on private sector investment, which can be unpredictable and subject to various risks, including policy and regulatory risks.
“As a result, the successful implementation of the plan will require effective coordination among various stakeholders, including government agencies, private sector players and regulatory bodies,” said Ms Mapfumo.
In addition, Minister Ncube said the Government would continue to scale up investments in the energy sector to meet rising energy needs through the implementation of new projects and the maintenance and upgrading of existing obsolete facilities.
He said achieving energy self-sufficiency required a stable, transparent and adaptive regulatory environment; hence, the Government would continue to strengthen regulatory frameworks to provide investor clarity and attract long-term capital, including through PPPs and innovative financing mechanisms.
“Institutional reforms will also focus on enhancing market efficiency, supporting transparent procurement and de-risking private sector investment.
The finance minister also highlighted that the country will continue to leverage regional power pools and cross-border interconnections to improve energy security and optimise resource utilisation.
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