Powering Progress: Zimbabwe, Zambia Unite in Victoria Falls

Energy Security Key to Unlocking Digital Potential

By Shingirai Vambe

Victoria Falls-For decades, Zimbabwe and Zambia have been bound together by a shared history, cultural heritage, and geographic ties. The two nations, nestled in the heart of Southern Africa, have a long-standing relationship forged through colonial era ties, regional cooperation, and economic interdependence. The majestic Zambezi River, which forms the border between the two countries, has been a symbol of connection and a source of hydroelectric power.

Despite the rich natural resources and strategic location, Zimbabwe and Zambia face a pressing challenge, energy security. Chronic power shortages, aging infrastructure, and growing demand have hindered economic growth, stifled industrial development, and affected daily life. The energy crisis has also limited the two nations’ ability to unlock their full potential as trade hubs, connecting Europe, Asia, and the African continent.

However, a new era of cooperation and innovation is unfolding. Against the backdrop of the iconic Victoria Falls, Zimbabwe and Zambia have come together to tackle their energy challenges and unleash their economic potential. The Zimbabwe-Zambia Energy Summit, a landmark event, brings together leaders, experts, and investors to explore sustainable energy solutions, investment opportunities, and regional cooperation.

The reduced water available for power generation to a mere 2.4%, compared to 15.5% last year, according to the Zambezi River Authority has resulted in the two countries merging and coming up with bilateral lasting solutions in reducing poverty.

Without energy, digital development is essentially non-existent. This is because energy is the backbone that powers the infrastructure needed to support digital technologies. Think of it like a smartphone without battery life – it’s just a fancy paperweight.

In today’s digital economy, energy consumption plays a critical role in sustaining economic growth and development. The digital economy relies heavily on energy-intensive infrastructure, such as data centers, networks, and devices. Without a stable and reliable energy supply, these systems grind to a halt, crippling digital development.

Officially opening the summit yesterday, Vice President, Constantino Guvheya Chiwenga said Zimbabwe and Zambia are set to lead the renewable energy revolution in Southern Africa, harnessing their abundant solar, wind, and hydro power resources to create a sustainable energy future. This vision is in line with Zimbabwe’s National Renewable Energy Policy, aiming for 16.5% of electricity from renewables by 2025 and 26.5% by 2030. Currently, hydropower dominates Zimbabwe’s renewable energy landscape, with the Kariba Dam supplying over 50% of the country’s electricity.

“We have made significant progress in expanding electricity access, far too many of our citizens, particularly in rural and underserved areas still lack reliable energy, this limited access means fewer economic opportunities, lower standards of living, and slower industrial growth. At this summit, we must commit to finding innovative solutions that increase investment in both on-grid and off-grid energy solutions. The two countries should harness the power of new technologies, such as solar mini-grids, energy storage systems, and smart grids, to bring electricity to even the remotest corners,” added Vice President Chiwenga.

However, the focus is shifting to other forms of renewable energy, such as solar and wind power, with various independent power producers (IPPs) contributing to the national grid. At the Zimbabwe-Zambia Energy Projects Summit in Vic-Falls, VP Chiwenga emphasized the urgent need for innovative solutions to increase investment in both on-grid and off-grid energy solutions.

“Energy access is a fundamental human right, essential for education, healthcare, agriculture, and job creation. We cannot afford to leave anyone behind,” he emphasized. “By expanding energy access, we’re building a foundation for sustainable development that benefits every Zimbabwean and Zambian.

As we look to the future, renewable energy will be the game-changer. Zimbabwe and Zambia are poised to lead the renewable energy revolution, leveraging their vast untapped resources in solar, wind, and hydro power. The global shift towards cleaner energy is underway, and it’s crucial that both nations seize this opportunity to meet today’s energy needs and build a resilient, sustainable energy future.

Solar energy, in particular, holds immense promise. With abundant sunlight throughout the year, Zimbabwe and Zambia can develop large-scale solar farms to generate power for local consumption and export to neighboring countries through regional power pools like the Southern African Power Pool.

The Zimbabwe-Zambia Energy Projects Summit, themed “Powering Zimbabwe and Zambia’s Sustainable Energy Future: Unlocking Opportunities in Renewables, Grid Modernisation and Energy Access,” aims to unlock this potential.

Officially opening the Conference of Parties COP29 in Baku Azerbaijan, the President CDE Emmerson Dambudzo Mnangagwa said transition to renewable energy is non-negotiable, the geographical location of the summit site the potential the southern region has in harnessing solar energy and Zimbabwe has already made strides in building mini-solar and hydro plants in Matebeleland and Manicaland.

Due to energy insufficient and imports of at least 300 MW from Eskom South Africa, while other imports are coming from Mozambique’s Cahora Bassa, Old Mutual Zimbabwe, a subsidiary of Old Mutual  poured US$12.4 million into solar projects, expected to generate a combined 25 MW upon completion.

OMZim says its investment activities are now focused on activities that will “help the economy recover and grow as well as helping our clients preserve value for their investments” The Old Mutual CEO, Samuel Matsekete said they will continue to recognize and support sectors such as sustainable energy, agriculture, and other green climate projects.

While OMZim’s portfolio has been anchored on insurance and investment in the major cities, it explained that the group’s new strategy is to “diversify away from city buildings and venture into private infrastructure and equity investments, specifically in the energy sector”.

“We have invested US$12.4 billion into solar projects around Zimbabwe that will generate a combined 25 MW upon completion and also contribute in feeding electricity into the national grid,” said Matsekete.

Among other projects, OMZim has invested in is a 5.4 MW solar farm at Cross Mabale in Dete, Matabeleland North province. The investment, which is a joint venture between Old Mutual Investment Group and Solgas Energy and OMZim had invested US$7.3 million to the project with a total number of 16 000 solar panels.

There is also Harava Solar project, in Harare, Seke, expanded to 20 MW from initial phase of 6 MW. The plant will provide power to 45 000 households, according to officials.

Matsekete, said investments in alternative assets continue to track well as they have also funded the installation of solar-powered irrigation equipment to assist water reticulation and small-scale agriculture at 26 schools. He also stated that they sustained investments in infrastructure, projects such as those in green energy or investments in the real estate sector.

Zimbabwe and Zambia are tapping into blended finance to electrify their rural areas, recognizing the urgent need for private sector involvement to overcome energy challenges and achieve universal access by 2030. By combining official development assistance with private and public resources, blended finance unlocks additional funding from various stakeholders.

The Southern African Development Community (SADC) region faces a significant energy access gap, with less than 50% of the population having access to electricity. To bridge this gap, experts emphasize the importance of exploring both centralized and decentralized energy solutions. Blended finance emerges as a vital strategy to accelerate progress.

According to Felister Makumbinde, acting CEO of the Zimbabwe Rural Electrification Agency (REA), “pursuing blended finance in rural areas is crucial, as government resources alone are insufficient to electrify all areas.” Makumbinde stresses the need for private sector participation, particularly in economically viable mini-grid projects, where blended finance can streamline electrification and provide energy access to entire communities.

Zimbabwe is championing a model that combines mini-grids and microgrids to empower its economy, lift communities out of poverty, and improve livelihoods, aiming for a middle-income society by 2030. This vision was shared at the Zimbabwe-Zambia Energy Projects Summit, where Joseph Mutale, Chairman of the Zambia Renewable Energy Association, highlighted the significant funding required to achieve universal access by 2030 – a staggering $11 billion, with over $3 billion needed for off-grid and on-grid solutions.

The panel discussion, moderated by Paul van Aalst, emphasized the challenges of project bankability and the need for a transparent procurement framework. Experts from the Rural Electrification Authority of Zambia, GOGLA, and the Rockefeller Foundation joined the conversation, stressing the importance of innovative financing solutions.

Zambia’s Energy Minister, Makozo Chikote, emphasizes the vulnerability of their energy mix, stressing that over-dependence on hydropower has exposed them to significant risks. To address this, Zambia is exploring alternative sources, particularly solar power, to ramp up its energy production.

Going for hours without power has left the two nations struggling to meet their electricity demands, hindering industries like mining and agriculture, and ultimately, curtailing economic growth.

Expected to end on Thursday, the summit’s focus on two countries facing a critical wake-up call as the world’s largest man-made reservoir hits alarmingly low water levels is a milestone achievement.