Zimbabwe Seals $455 Million Jindal Power Deal

Zimbabwe has signed a US $455 million concession with Jindal Africa to refurbish Hwange Power Station (image source)

Zimbabwe has signed a US $455 million, 15-year concession with Jindal Africa to refurbish six ageing units at the 920 MW Hwange coal-fired power station, aiming to restore capacity, reduce load-shedding, and ease chronic electricity shortages.

The agreement, announced by Energy Minister July Moyo during a post-cabinet briefing on 17 September, tasks Jindal Africa—India’s Jindal Steel subsidiary focused on the continent—with overhauling units commissioned in the 1980s. Work is set to span four years, after which Jindal will recoup its investment from electricity-sale revenues under a public–private concession framework.

“This concession deal is a strategic move to fast-track capacity restoration without indebting taxpayers,”said July Moyo at the State House briefing.

Zimbabwe currently meets just half of its roughly 2 000 MW peak demand, enduring daily blackouts that average 8–12 hours. The Hwange complex, the nation’s largest, saw two new 300 MW units added in 2023, lifting overall capacity to 1 520 MW, but its remaining six units have operated at one-third capacity due to breakdowns and maintenance backlogs.

Under the concession terms, Jindal Africa will manage operations, secure spare parts, and upgrade boilers, turbines, and control systems. The company will earn a fixed tariff per kilowatt-hour sold over 15 years, with a review clause in year seven. If performance benchmarks—such as unit availability rates above 85 percent—are missed, penalties will apply.

Energy-sector veteran and analyst Dr. Thandiwe Moyo of the Zimbabwe Coalition on Debt and Development applauds the model but warns on tariffs:

“While private capital fills an urgent gap, tariff structures must remain affordable. Otherwise, consumers and industries risk passing higher costs to end users.”

Public–private concessions have underpinned power revamps in emerging markets. In 2019, Kenya’s Mumias Sugar Power Project followed a similar path, attracting an Indian investor to convert bagasse into 50 MW of baseload power. Zimbabwe’s deal echoes regional trends of leveraging private expertise to overcome state-owned utility funding constraints.

Jindal Africa will also train local engineers in digital maintenance practices and environmental safeguards.

“Knowledge transfer is integral,” says Jindal’s country director, Sanjay Rathi. “We’re embedding predictive-maintenance protocols to slash unplanned downtime.”

Since the 1990s, Harare’s and Bulawayo’s grids have faced underinvestment. Kariba’s hydroelectric station, inaugurated in the 1960s, completed a 300 MW upgrade in 2018 to reach 1 050 MW but remains vulnerable to drought-induced capacity dips. Zimbabwe Power Company’s 2024 annual report flagged a ZWL 3 billion maintenance shortfall and projected up to 3 000 MW demand by 2030.

Frequent power cuts have cost the economy up to US $1 billion annually in lost productivity, according to a 2024 Confederation of Zimbabwe Industries study. Manufacturing plants operate on captive diesel generators, and SMEs cite energy insecurity as the top investment deterrent.

Restored capacity at Hwange could stabilise the national grid, reduce diesel imports, and unlock foreign-direct investment in mining and agro-processing.

“Reliable power is the backbone of industrialisation,” notes economist Dr. Kostia Mpofu of the University of Zimbabwe. “This deal could catalyse job creation and export expansion if implemented effectively.”

Communities around Hwange also stand to benefit. The refurbishment includes a community water-treatment component, expected to alleviate water-scarcity issues exacerbated by coal-ash contamination. Local council chairperson Mercy Zambara says,

“We welcome initiatives that marry industrial upgrade with social-service improvements.”

The Energy Ministry must obtain parliamentary approval for tariff schedules by 31 October and update regulations governing independent power producers. Observers will track Jindal’s financing plan, the government’s regulatory amendments, and the project’s early performance metrics to assess whether this concession can herald a turning point in Zimbabwe’s long-standing power crisis.