Zimbabwe’s electricity import bill is rapidly approaching the US$1 billion mark, underscoring the scale of the country’s energy deficit and the growing pressure it is placing on the mining industry, which depends on a stable power supply to sustain production, Mining Zimbabwe reports.
By Ryan Chigoche
Latest data shows that between January 2021 and March 2026, the country spent US$881.7 million on imported electricity, highlighting an increasing reliance on regional power markets at a time when domestic generation continues to fall short of demand.
The figures point to a prolonged imbalance between domestic supply and demand. Output from key generation sources, including Kariba South and Hwange Thermal Power Station, has consistently fallen short, forcing authorities to supplement supply through imports from regional utilities such as Mozambique’s Hidroeléctrica de Cahora Bassa, South Africa’s Eskom, and Zambia’s ZESCO.
On average, the country has been spending about US$13.4 million per month on imported electricity over the past five years. Annual expenditures peaked at US$207.8 million in 2022 and remained elevated at US$207.7 million in 2024. In the first three months of 2026 alone, Zimbabwe imported electricity worth US$35.1 million, suggesting continued reliance on external supply.
For mining companies, which drive a significant share of export earnings, these energy challenges have tangible operational consequences. Power outages and load-shedding disrupt production schedules, while reliance on diesel-powered backup systems significantly increases costs.
The sharp rise in imports recorded in 2022, including a monthly high of US$37.4 million in October, coincided with critically low water levels at Kariba Dam. Reduced hydropower output forced the country to turn to the regional market at a time when electricity prices were also elevated due to drought conditions affecting the wider Zambezi Basin.
This period highlighted the risks associated with Zimbabwe’s reliance on hydropower. With a large portion of generation capacity tied to Kariba, fluctuations in rainfall patterns continue to have a direct impact on electricity availability and, by extension, industrial productivity.
While the commissioning of Units 7 and 8 at Hwange added around 600MW to installed capacity, actual output has been constrained by operational challenges, including coal supply issues, maintenance requirements, and broader financial pressures within the power utility.
Electricity import costs dropped to US$117 million in 2025, the lowest annual figure over the review period. However, this decline does not necessarily signal improved domestic supply. Instead, it is largely attributed to foreign currency constraints, which have limited the ability to secure imports, resulting in increased load-shedding.
For the industry, including mining, this has translated into hidden costs, lost production time, equipment strain due to unstable supply, and higher energy expenses from alternative power sources.
Zimbabwe continues to rely on imports for roughly 20% of its electricity needs. Cahora Bassa remains the primary supplier, delivering between 200MW and 400MW through the direct transmission link into the national grid, with additional support from Eskom and ZESCO.
The sustained reliance on imports reflects a structural issue within the power sector, one that has persisted across multiple years without a lasting resolution.
In response, the Mutapa Investment Fund has outlined a US$500 million energy investment plan aimed at strengthening local generation capacity. The initiative forms part of a broader funding strategy that includes commodity-backed financing and financial sector partnerships.
If successfully implemented, the investment could help ease pressure on the import bill. For example, a 300MW solar project operating under Zimbabwe’s high solar irradiation conditions could generate roughly 600 million kilowatt-hours annually, potentially substituting around US$60 million worth of electricity imports.
For the mining sector, improved energy security would have far-reaching implications, enabling stable production, lowering costs, and supporting long-term expansion.
Zimbabwe’s electricity deficit, therefore, extends beyond the power sector; it remains a key constraint on mining performance, export growth, and overall economic stability.
