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The Mutapa Investment Fund (MIF) has greenlited a groundbreaking $350 million joint venture with Indian company Jindal Africa Investments and Zesa to refurbish six units at the Hwange Thermal Power Station.
This initiative aims to add approximately 400 megawatts (MW) to Zimbabwe’s national grid, providing crucial relief amid ongoing power shortages.
Currently, Zimbabwe faces debilitating daily load-shedding of up to 16 hours, forcing businesses to rely heavily on generators, many corporations report monthly fuel costs soaring to $300,000, significantly impacting production expenses. The alternative energy sources available are roughly 50% more expensive than conventional electricity.
MIF CEO John Mangudya highlited that, “The Mutapa Investment Fund board has approved the partnership between Zesa and Jindal Africa Investments for the refurbishment of Hwange units 1 to 6 on a rehabilitate, operate, and transfer basis.”
He added that the partnership would enhance the grid’s capacity, increasing electricity supply by around 400 MW, ultimately lifting it to 840 MW post-refurbishment.
President Emmerson Mnangagwa previously inaugurated Units 7 and 8 of Hwange in August 2023, contributing an additional 600 MW to the grid, funded by Chinese firm Sinohydro at a cost of $1.5 billion. As of now, Zimbabwe generates 1,267 MW of electricity, with Hwange accounting for more than half of that output.
Jindal Africa, a subsidiary of the $12 billion OP Jindal Group, is involved in diverse sectors including steel, power, and mining, employing over 50,000 globally. The collaboration with MIF marks a significant step towards revitalizing Zimbabwe’s energy sector.
Following its transformation from the Sovereign Wealth Fund last year, MIF aims to boost investment and improve the performance of state-owned enterprises (SOEs), which have seen their GDP contribution plummet from 40% in the 1990s to just 12% in 2021. Mangudya emphasized the urgency of reversing this trend, as many SOEs struggle with legacy debts.
To further enhance power generation, MIF is also exploring independent power producer (IPP) projects and diversifying energy sources, including natural gas. Mangudya noted, “Gas provides a good source of energy,” and mentioned MIF’s backing of $5 million in Zimbabwe depository receipts from Invictus Energy.
In addition to these measures, MIF, in collaboration with Zesa, is accelerating the installation of smart and prepaid meters nationwide to align electricity supply with demand and improve debt collection.
With these initiatives, the Mutapa Investment Fund is taking significant steps to tackle Zimbabwe’s energy crisis, while ensuring strong corporate governance and a commitment to transparency.
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