ZIMBABWE SIGNS $455M DEAL TO REVAMP HWANGE POWER STATION WITH JINDAL AFRICA
ZIMBABWE has sealed a $455 million concession agreement with Jindal Africa, a subsidiary of India’s Jindal Steel, to rehabilitate the ageing Hwange coal-fired power plant in what officials describe as a crucial step towards stabilising the country’s electricity supply.
Energy and Power Development Minister July Moyo announced the 15-year deal, under which Jindal will finance, refurbish, and operate six old generating units at Hwange before handing them back to the state-owned Zimbabwe Power Company (ZPC).
The targeted units, commissioned in the 1980s, have been running at barely one-third of their design capacity owing to constant breakdowns and obsolete equipment. Refurbishment is expected to take four years, with Jindal recovering its investment through electricity sales during the concession period.
Hwange is Zimbabwe’s largest thermal station, with an installed capacity of 1 520 megawatts. Although a 2023 expansion added two new units generating 600 MW, the older sections remain highly unreliable.
Zimbabwe currently produces only about half of its 2 000 MW national demand, forcing widespread load-shedding and heavy reliance on imports from regional neighbours.
Alongside Hwange, the Kariba South hydropower station has traditionally been a backbone of supply, especially after a 2018 upgrade boosted its capacity to 1 050 MW. However, prolonged droughts have sharply reduced water levels and constrained output.
Analysts say the Jindal concession is critical for Zimbabwe’s industrial recovery, as power shortages have stalled mining, agriculture, and manufacturing output.
The rehabilitation project, once completed, is expected to restore Hwange’s reliability, cut import dependence, and enhance investor confidence in the energy sector.
