Overview
Zimbabwe has completed the main works under Phase II, Stage II of its Emergency Power Infrastructure Rehabilitation Programme (EPIRP), marking a significant milestone in the country’s efforts to stabilise and modernise its electricity grid. The US$9.2 million project, financed through a combination of a ZIMFUND grant and government co-financing, focuses on upgrading critical substations and distribution assets to reduce outages and improve supply reliability.
Project Scope and Delivery
The completed works include the installation and commissioning of a 75 MVA power transformer at the Orange Grove substation in Mutare, substantially increasing capacity and improving voltage stability in Manicaland Province. In Harare, a 1 MVA transformer was installed at the Gimboki water treatment plant, supported by approximately 2 km of new 33 kV distribution line. Together, these upgrades address long-standing bottlenecks that had contributed to frequent outages and constrained industrial and municipal operations.
Total project funding amounted to US$9.2 million, comprising approximately US$6.67 million in concessional financing from ZIMFUND and US$2.53 million in counterpart funding from the Zimbabwe Electricity Transmission and Distribution Company (ZETDC). A further 175 MVA transformer for the Sherwood substation in Kwekwe was delivered in 2024 and is expected to be installed and commissioned by mid-2026, completing this phase of EPIRP.
Market Context
Zimbabwe’s power sector has struggled for years with aging infrastructure, limited maintenance, and underinvestment, affecting mining, manufacturing, and urban services. EPIRP Phase II builds on earlier interventions such as upgrades at Hwange Power Station and aligns with broader rehabilitation initiatives, including the Kariba South Dam rehabilitation and planned new generation capacity. Donor-supported programmes have played a critical role in closing financing gaps amid fiscal constraints.
Strategic Implications
From an energy security perspective, the new transformers reduce substation overloading and lower the risk of widespread blackouts in key economic zones. Improved electricity reliability supports productivity in mining and manufacturing hubs such as Mutare and Kwekwe, reinforcing the link between grid stability and economic growth.
The financing structure also provides an important signal to investors. The combination of concessional donor funding and local co-financing demonstrates a workable model for rehabilitating essential power infrastructure in high-risk markets.
Investor Outlook
For local investors, the project has strengthened domestic engineering and contracting capacity, particularly in high-voltage installations. Improved grid performance is expected to encourage industrial expansion and create opportunities for financiers, suppliers, and service providers.
Internationally, the successful execution of EPIRP Phase II, Stage II shows that donor-backed grid rehabilitation in Zimbabwe is feasible. As reliability improves, opportunities may emerge in generation, transmission, and associated EPC services. However, investor confidence will continue to depend on utility financial health, tariff reforms, and currency stability.
Conclusion
With the Orange Grove and Gimboki upgrades now operational and Sherwood commissioning pending, EPIRP Phase II, Stage II represents a tangible step toward stabilising Zimbabwe’s power system. Continued maintenance, tariff reform, and donor engagement will be critical to sustaining momentum and unlocking broader private investment in the energy sector.
