- Electricity shortages and unreliable supply cost Zimbabwe an estimated 6.1% of GDP annually, according to the World Bank, strengthening the economic case for private renewable-energy investment
- CAFCA's US$1 million, 1.2MW solar plant is expected to meet approximately 30% of its electricity requirements, while RTG is developing a 2MW installation following a 31% reduction in energy costs at its Kadoma operation
- With electricity demand projected to increase from 1,950MW in 2022 to 5,177MW by 2030, the next investment challenge is extending privately financed solar generation into agriculture, manufacturing and smaller enterprises
Harare- Zimbabwean manufacturers, agricultural producers and other businesses are increasingly investing in solar electricity to protect production from unreliable grid supply, placing private renewable-energy generation at the centre of efforts to reduce industrial costs and improve economic productivity.
The World Bank estimates that inadequate and unreliable power supply costs Zimbabwe approximately 6.1% of GDP annually, while electricity demand is projected to rise from 1,950MW in 2022 to 5,177MW by 2030, driven partly by expanding mining and agricultural requirements.
For businesses, the calculation is increasingly commercial. Investment in solar generation can reduce expenditure on backup power, improve electricity availability during operating hours and allow equipment to remain productive when grid supply is constrained.
The emerging investment model is already visible among listed companies and major industrial operators, where generation capacity is being developed around the electricity requirements of existing production facilities.
Cable manufacturer CAFCA commissioned a 1.2MW solar installation in Harare at a cost of approximately US$1 million, and in an exclusive interview with the company’s Chief Executive Officer Vimbayi Nyakudya, he said, “We are expecting the plant to meet around 30% of our electricity requirements and reduce our electricity bill by a similar proportion.”
CAFCA estimates that the investment will recover its cost within three to three-and-a-half years. This provides a measurable example of renewable energy becoming part of industrial cost management.
For a manufacturer, the financial return depends on the quantity of electricity produced, the cost of the grid or backup energy displaced, maintenance expenditure and the proportion of generation consumed during productive operating hours.
The expected payback period also provides a benchmark against which the company's future energy savings can be assessed. An installation that reduces purchased electricity can improve operating margins, particularly where energy accounts for a significant share of manufacturing expenses. Reliable daytime generation can also support production scheduling and reduce exposure to interruptions during periods of peak demand.
Nyakudya said he expects excess electricity from its plant to be exported to the national grid through net metering, allowing the company to derive value from generation beyond its immediate consumption requirements, subject to the applicable arrangements.
The experience illustrates how solar investment can provide businesses with an identifiable financial return while supporting more dependable industrial operations.
Rainbow Tourism Group is developing a 2MW solar installation at Rainbow Towers and the Harare International Conference Centre, following the performance of its solar investment in Kadoma which Tendai Madziwanyika, the group’s CEO said is catering for at least 30% of energy needs in an exclusive with Equity Axis. Madziwanyika said he expects to solarise every group hotel portfolio by FY2027. The Harare project is expected to generate approximately 2.94 million kilowatt-hours annually, with surplus electricity potentially supplied to the national grid through a grid-tied arrangement.
For hospitality operators, energy costs extend across accommodation, refrigeration, catering, heating and other facilities. Lower purchased-electricity requirements can improve operating efficiency, although actual savings depend on the system's output and the cost of electricity displaced.
The investment model is also expanding into larger industrial facilities. Shuntai Cement Plant is developing a 50MW solar installation alongside a planned 50MW thermal facility to support its cement operations.
The project is associated with a US$120 million cement plant within a broader US$200 million investment programme. The facility is expected to produce 6,000 tonnes of cement daily when operational.
Integrating electricity generation into the development of an industrial plant allows investors to assess power availability alongside production capacity from the outset.
Cement manufacturing requires substantial and dependable electricity supply for processing and related operations. Captive generation can help reduce exposure to external supply constraints, although the final cost advantage depends on capital expenditure, operating costs and plant utilisation.
Econet is pursuing a larger renewable-energy programme through a solar and battery installation intended eventually to reach 100MW. The company has commenced the first phase of construction, with the broader project designed to supply electricity to its Harare operations, telecommunications infrastructure and data centres.
The proposed installation forms part of Econet Tech City, where surplus generation could potentially support other businesses within the development. The projects demonstrate different applications of private electricity investment, from reducing purchased power in existing facilities to incorporating generation into major industrial and infrastructure developments.
Their economic contribution will depend on the electricity actually delivered, the extent of existing energy costs displaced and whether reliable supply supports greater productive activity.
In agriculture, the relationship between electricity and production is particularly important for irrigation, cold storage and agro-processing. Solar-powered pumping systems can reduce reliance on diesel generation and unreliable grid connections, making irrigation more accessible where farmers have suitable water resources.
The World Bank has identified farmer-led irrigation as an opportunity for expanding agricultural productivity in Zimbabwe, with solar pumping among the technologies capable of supporting investment.
The potential benefit extends beyond electricity savings. Reliable irrigation allows farmers to manage water application more effectively and reduce their dependence on rainfall during critical crop-development periods. Where adequate water is available, this can support more consistent production and make additional agricultural activities commercially viable.
For agro-processors, dependable electricity supports milling, refrigeration, packaging and other operations that determine how much value can be retained from agricultural output.
The financial obstacle is the initial investment required. Large agricultural enterprises may have sufficient resources to finance solar equipment directly. Smaller farmers often face greater difficulty securing long-term credit, purchasing equipment and meeting the costs of installation and maintenance.
The World Bank has identified financing, land rights and wider investment conditions among the constraints affecting the expansion of farmer-led irrigation. Leasing arrangements, concessional lending, shared systems and pay-as-you-go financing could improve access where future agricultural income is sufficient to support repayments.
Such structures would need to account for seasonal cash flows, maintenance, water availability and the financial circumstances of participating farmers. The agricultural opportunity therefore depends on linking renewable-energy technology with viable irrigation investment and farming economics.
The scale of Zimbabwe's electricity requirements places substantial pressure on investment resources. Government has outlined plans to mobilise more than US$9 billion over five years for the energy sector, with private investors expected to contribute more than US$4.42 billion.
Renewable-energy generation capacity is targeted to increase from 1,282MW in 2024 to 2,640MW by 2030. These ambitions require financing arrangements that allow private developers and electricity consumers to invest in new generation facilities.
One emerging model involves independent power producers selling electricity under long-term contracts. In June 2026, ZimGreenCo and Dolcin Trading signed a 25-year power-purchase agreement for a 50MWac solar photovoltaic project near Chegutu.
Under the arrangement, GreenCo will purchase the electricity and supply it to large energy users, while ZETDC provides system-operation services through an open-access structure. The commercial importance lies in the relationship between contracted electricity demand and the ability to finance generation.
A long-term power-purchase agreement can provide a developer with greater revenue visibility, supporting assessments of debt repayment and investor returns. Open access can also allow generation projects to serve customers beyond their immediate location, subject to transmission capacity, wheeling arrangements and applicable charges.
The effectiveness of these structures depends on payment security, regulatory consistency and the financial strength of the parties purchasing electricity. For developers, the cost of capital can materially influence the electricity tariff required to make a project viable. For customers, the investment must offer a competitive and dependable source of energy relative to existing alternatives.
The emerging investments demonstrate that Zimbabwean businesses are willing to finance renewable generation where commercial returns can be established.
CAFCA's expected payback period and RTG's reported energy savings provide measurable examples of the potential financial benefits. However, extending investment across smaller manufacturers, farmers and rural enterprises requires financing structures suited to businesses with more limited capital.
Solar installations generally involve significant upfront expenditure, followed by electricity production and savings over their operating life. This creates a financing requirement for long-term capital, particularly where businesses cannot fund installation directly from existing cash reserves.
The World Bank's Growth and Jobs Report identifies limited access to long-term finance and shallow financial-sector depth among Zimbabwe's constraints on stronger private investment.
Longer-tenor lending, guarantees, equipment leasing and blended finance could help businesses fund installations against their expected electricity savings, subject to the creditworthiness of the borrower and the commercial viability of the project.
Regulatory arrangements are equally important. Net metering allows eligible businesses to account for electricity exported to the grid, while open access creates opportunities for privately generated electricity to reach contracted customers.
The ability to connect projects, sell surplus power and obtain predictable payments affects the returns available to investors. Improving these arrangements could expand participation beyond enterprises already capable of financing their own generation.
Expanding solar deployment also creates demand for engineering, electrical equipment, installation, batteries, maintenance services and system monitoring. These activities offer opportunities for domestic businesses to participate in the renewable-energy value chain.
Local firms supplying components and technical services can develop capabilities around an expanding market, while manufacturers and commercial operators benefit from improved access to electricity. The economic impact can therefore extend beyond generation facilities themselves.
However, greater installed capacity does not automatically establish greater national output. The contribution to productivity must be measured through the electricity delivered, its reliability and the productive activity it supports.
This distinction is important for a country seeking to translate improving macroeconomic stability into sustained industrial expansion and employment. The World Bank's Growth and Jobs Report estimates that Zimbabwe averaged real GDP growth of nearly 6% between 2021 and 2025, while identifying inadequate productive employment and limited improvements in household incomes as continuing challenges.
Investment in reliable electricity can address one of the infrastructure constraints affecting that performance, particularly where it supports factories, irrigation and higher-value production.
For policymakers and investors, the relevant measures include manufacturing output supported by captive generation, irrigated hectares using solar pumping, reductions in purchased-energy expenditure and additional business activity made possible by reliable supply. These outcomes provide a clearer basis for assessing the economic contribution of renewable-energy investment than installed capacity alone.
Therefore, Zimbabwe's private solar market is developing around identifiable business requirements. CAFCA is targeting lower manufacturing electricity costs, RTG is expanding an investment model that has already generated reported savings, while Econet and Shuntai are integrating generation into larger operating and industrial developments.
The ZimGreenCo and Dolcin arrangement provides an example of the financing and contractual structures being developed to connect private generation with major electricity consumers.
Agriculture offers another area for expansion, although the financing requirements and commercial risks facing smaller farmers differ from those of large industrial users. The next stage of renewable-energy development will depend on extending commercially viable financing and electricity-market arrangements across these different sectors.
Zimbabwe's electricity deficit has created a substantial economic burden. Private solar investment offers a route to reducing part of that burden where generation is reliable, affordable and connected to productive demand.
The success of the country's renewable-energy expansion should therefore be assessed through measurable gains in industrial efficiency, agricultural production and business competitiveness. For Zimbabwe, the value of solar investment lies in the electricity it supplies and the productive capacity that electricity makes possible.
Equity Axis News
