Trymore Tagwirei
Zimbabwe’s energy sector has received a major boost following government’s approval for private companies to participate in the distribution and retailing of electricity — a landmark policy shift aimed at accelerating universal access to power by 2030.
In a statement released yesterday, the Zimbabwe Energy Regulatory Authority (ZERA) said the liberalisation of the electricity retail space is expected to attract new investment, enhance efficiency, and improve service delivery across the country.
“The Government of Zimbabwe has approved the participation of private players in the retailing and distribution of electricity to consumers, to complement ongoing efforts to achieve universal access to electricity by 2030,” said ZERA.
Under the new framework, the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) will work alongside licensed private distributors to expand the national electricity network, particularly in newly developed and under-served areas.
“Private companies will now be licensed to distribute and retail electricity in under-served areas, complementing the work of ZETDC,” ZERA added.
Companies seeking licences will be required to demonstrate both technical and financial capacity to develop, operate, and manage electricity distribution systems in line with national laws and regulatory standards.
According to ZERA, the move is in line with Section 44 of the Electricity Act, which encourages investment in secondary electricity distribution infrastructure to improve efficiency and ensure wider coverage.
“This development aims to attract investment in secondary distribution infrastructure, reduce costs to Government, and facilitate the integration of renewable energy sources into the national grid,” the authority said.
The liberalisation drive is expected to unlock private capital for energy infrastructure development, modernise the power supply network, and ease the financial burden on the State.
It also aligns with the National Development Strategy 1 (NDS1) and Vision 2030, which identify reliable and sustainable energy as key drivers of industrialisation and economic growth.
Energy remains central to productive sectors such as mining, agriculture, and manufacturing, and supports essential services including healthcare, education, and water supply.
For over a decade, Zimbabwe has faced recurring power shortages caused by ageing infrastructure, limited generation capacity, and growing demand from an expanding economy — challenges that have resulted in frequent load-shedding, reduced industrial output, and higher operating costs for businesses.
By opening up the electricity distribution and retail sector to private participation, the Government aims to decentralise operations, improve efficiency, and attract investment to strengthen national power supply and enhance service reliability.
