ZIMBABWE and Zambia convened a high-stakes investment summit in Victoria Falls this week, seeking to stimulate economic growth in their industrial and energy sectors.
The event, which was the first of its kind held by the two countries, brought together key stakeholders, including ministries, utilities, regulators, energy organisations, international private sector stakeholders, institutional investors, private financiers and service providers from both countries. Discussions focused on creating an attractive energy investment destination and leveraging innovative, profitable renewable energy solutions to achieve universal access. Zimbabwe and Zambia face power outages that have been lasting over 18 hours daily due to depressed electricity generation capacity.
This has largely been caused by low water levels at Lake Kariba. This has affected power generation at the Kariba North and South hydroelectric plants. These are the two countries' largest power stations on the Zambezi. Power blackouts have resulted in a US$500 million revenue loss for Zimbabwe's big mining companies in the past year.
Hence, it was refreshing to witness the two countries coming together to find solutions to power challenges. During the summit, experts recommended harnessing solar energy to alleviate electricity shortages and transform the energy landscape through cross-border collaborations.
With high solar insolation and underutilised land, solar energy can be a prime resource for Zimbabwe and Zambia. Presenters at the conference urged stakeholders to embrace blended finance to electrify rural areas, combining official development assistance with private or public resources to leverage additional funds. This will enable private sector involvement and help achieve universal energy access. With the Sadc region having a less than 50% energy access rate, it is imperative that the government and investors consider both centralised and decentralised energy solutions.
Sydney Gata, Zesa Holdings executive chairman, highlighted challenges facing the Batoka Gorge Hydroelectric Project, including enforcement and load factor risks. Gata proposed undertaking comprehensive feasibility studies, encompassing market analysis and hydrological assessments, to rescue the project. He also recommended harmonising regulatory policies for cross-border investments, indicating that the current laws between the two countries were not in harmony.
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It is imperative that Zimbabwe and Zambia implement these recommendations. The private and public sectors must work together to address power issues before the economies collapse. With collective action, power challenges can become a thing of the past. To achieve this vision, several key steps must be taken.
These include enhancing regional cooperation, investing in infrastructure, promoting public-private partnerships, embracing innovative technologies, and fostering policy stability. By implementing these measures, Zimbabwe and Zambia can overcome their energy challenges, drive economic growth, and improve the quality of life for their citizens. The time for action is now.