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The revival of the country’s economy cannot be successful without adequate power supplies hence the ongoing efforts by private sector players in particular Makomo Resources to expand into the energy sector should be applauded. Makomo, which has grown in stature to become the country’s largest coal producer in less than five years of existence, this week announced plans to spend $1.5 billion on a 600-megawatt power plant that will no doubt go a long way in improving the country’s electricity generating capacity.

Makomo is 60 percent owned by a group of Zimbabweans, with the other shareholding held by British and South African investors. The company holds contract to supply 60,000 tonnes of coal monthly to Hwange power plant, the nation’s biggest such facility, with 920 megawatts installed capacity. Essar Africa Holdings, the new majority shareholders in New Zimsteel, are also in the process of negotiating a power deal to set up a 300MW thermal plant in Kwekwe for its consumption with excess power expected to be fed onto the national power grid.

This, together with government projects such as the Kariba South power expansion project that is expected to add an additional 600MW onto the national grid, bode well for the economy going forward.

Local power-generation capacity averages 1,300 megawatts against a peak demand of 2,200 megawatts, resulting in load shedding.
All these initiatives are especially critical for the country as it emerges from its decade long economic decline. Given that power is barely enough at the moment when capacity utilisation is still low, construction of new power plants is most welcome.

Zimbabwe is endowed with a diversity of energy resources located in different parts of the country from hydro, to gas and coal.
Just like in other African countries, Zimbabwe’s energy sector suffers from little funding and alternative financial options to carry out such projects that are capital intensive.

The United Nations Economic Commission for Africa notes that funding levels in the African energy sector remain very low and have not increased significantly for many years despite the fact that most social and economic activities require the use of energy in various forms and quantities. Energy is as important to households for basic uses such as cooking, heating and lighting as it is for manufacturing companies.

As correctly observed by the UN, the case for energy as an indispensable element for ending poverty is well-known and documented as electricity enables children to study late into the night, allows for crops to be put under irrigation. In addition modern fuels for cooking and heating relieve women and girls from the time-consuming drudgery, physical strain and danger of travelling long distances to gather firewood.

It is, therefore, a welcome development for private sector investors to land a hand in electricity generation not only for their own needs but the well being of ordinary citizens as well. The realisation that government cannot go it alone in the provision of electricity brings to the fore a sense of oneness on the part of private sector players.

At this rate the country will not only have enough power for local consumption but also excess to export to neighbouring countries as well.
It is of utmost importance that government ensures a conducive environment prevails not only in the energy sector alone but across all other sectors in order to attract more investors into the country.

The provision of adequate power for local industries has many ripple effects as once we get industries working non-stop it will lead to job creation, increased competitiveness for locally produced goods among a host of other benefits.