Zimbabwe has signed a $455 million, 15-year concession deal with Jindal Africa, a subsidiary of India’s Jindal Steel, to refurbish six ageing units at the Hwange coal-fired power station.
Energy Minister July Moyo confirmed the agreement on Tuesday, saying the rehabilitation work is expected to take four years. Under the deal, Jindal Africa will recover its investment through revenue generated from electricity sales.
Zimbabwe currently generates only about half of its daily electricity demand of 2,000 megawatts. Frequent blackouts, some lasting several hours, have disrupted industry, businesses and households across the country.
The Hwange power station is Zimbabwe’s largest plant with a total capacity of 1,520 MW. Two new units, commissioned in 2023, added 600 MW to the grid. However, the older units, built in the 1980s, are running at a third of their capacity due to repeated breakdowns.
The country also relies on the Kariba hydropower station, built in the 1960s, which supplies up to 1,050 MW following a 300 MW upgrade in 2018. But power generation there has been unreliable in recent years due to persistent drought and low water levels in Lake Kariba.
Officials hope the Hwange refurbishment will help stabilise electricity supply, reduce dependence on imports, and support Zimbabwe’s struggling economy.
