Zimbabwe Seals $455m Hwange Revamp

Zimbabwe signs a US $455m concession with Jindal Africa to refurbish Hwange Thermal Power Station (image source)

The Government of Zimbabwe has approved a US $455 million, 15-year concession deal with Jindal Africa—the Africa-focused unit of India’s Jindal Steel—to refurbish six ageing units at the Hwange Thermal Power Station. The project, set to unfold over the next four years, will restore a combined 920 MW of capacity.

Deal Structure and Implementation

Energy Minister July Moyo confirmed that Jindal Africa will finance, rehabilitate, and operate the retrofitted units before handing them back to the Zimbabwe Power Company. The consortium will recover its investment through electricity sales.

“This agreement is a game-changer for our energy sector. It will stabilise supply and support economic growth,” Minister Moyo said.

The concession mirrors other African public-private partnerships, transferring operational risks to the private sector. Jindal Africa will introduce advanced boiler refurbishment, control-system upgrades, and emissions-control technology to align with environmental standards.

Energy Deficit and National Demand

Zimbabwe’s national electricity demand sits at 2,000–2,200 MW, but current supply covers only half, leading to frequent and extended power cuts. The Hwange station, built in the 1980s with an installed 1,520 MW, is operating at roughly a third of capacity due to breakdowns. Kariba hydropower—hit by drought despite a 2018 upgrade adding 300 MW—cannot bridge the deficit alone.

Economist Dr. David Chakanyuka of the University of Zimbabwe stressed the urgency:“Restoring Hwange’s full output is critical to ending load shedding and revitalising industry. Businesses cannot plan when power cuts are daily occurrences.”

Business and Industry Reactions

Local industry welcomed the announcement. CZI President Business Chamboko said stable power would boost manufacturing and attract foreign investment, particularly in energy-intensive sectors such as mining and agro-processing.

Background and Strategic Importance

The Hwange Thermal Power Station, commissioned in the late 1970s, originally housed eight units totalling 1,920 MW. Two newer units commissioned in 2023 added 600 MW, but the six older units remain crippled by neglect and breakdowns.

Rolling blackouts cost Zimbabwe an estimated US $1 billion annually. Under President Mnangagwa’s Vision 2030 framework, energy security is a top priority, with a target of 100 percent generation capacity by 2027 through diversified sources, including solar and wind. The Jindal concession dovetails with those plans, though financing challenges have slowed other pipeline projects.

Next Steps

Work on the refurbishment is slated to begin in early 2026, with phased unit commissioning starting in 2027. ZESA Holdings will monitor the project through an independent oversight committee.