Zimbabwe yesterday signed a landmark Petroleum Product Sharing Agreement (PPSA) with GEO Associates (Private) Limited, in a move Government says marks a major breakthrough in the country’s drive towards energy security, industrialisation and economic transformation.
Speaking at the signing ceremony, the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube described the agreement relating to petroleum operations under Special Grant 4571 as a major breakthrough for Zimbabwe’s economic transformation drive.
“It is my great honour and privilege to stand before you today as we witness the signing of this historic Petroleum Product Sharing Agreement between the Republic of Zimbabwe and GEO Associates (Private) Limited,” said Prof Ncube.
Prof Ncube said the signing went beyond a commercial arrangement and reflected growing international confidence in Zimbabwe’s economy and investment environment.
“Today’s event is not merely the signing of a commercial agreement. It is a statement of confidence in Zimbabwe.
It is a declaration that Zimbabwe is open for business, committed to sustainable resource development, and determined to unlock the full value of its natural endowments for the benefit of present and future generations,” he added.
The finance minister said the development of the Cabora Bassa Project was strategically important for the country’s industrialisation agenda and long-term economic growth.
“The Government of Zimbabwe recognises that the energy sector is a strategic enabler of industrialisation, infrastructure development, agricultural productivity, and national economic growth.
Energy security is central to achieving Vision 2030 and the National Development Strategy 1, whose overriding objective is to transform Zimbabwe into an upper middle-income economy,” he added.
Prof Ncube said the project had the potential to reduce Zimbabwe’s dependence on imported fuel products while strengthening national energy resilience.
“This is critical for improving our balance of payments position, stabilising production costs across sectors of the economy, and supporting long-term macroeconomic growth,” he said.
He said Government remained committed to creating a transparent and investor-friendly environment capable of attracting long-term investment into strategic sectors.
“The Agreement we are signing today provides a stable fiscal and regulatory framework to facilitate petroleum exploration, development, production, and marketing in Zimbabwe,” said Prof Ncube.
He added that Government policies were designed to ensure the country’s natural resources benefit ordinary Zimbabweans through local employment, skills transfer, procurement opportunities and community development.
“Our mining and energy policies therefore emphasise local content development, skills transfer, community empowerment, environmental protection, infrastructure development, and broad-based economic participation,” he said.
Prof Ncube said Government expected the project to contribute significantly to GDP growth, foreign currency generation, infrastructure development, employment creation and investor confidence.
“The signing of this agreement sends a strong signal to the international investment community that Zimbabwe is serious about developing its energy sector through modern, commercially viable, and internationally aligned frameworks.
This is a significant step towards positioning Zimbabwe as an emerging energy producer within the region,” he added.
He concluded by reaffirming government’s commitment to engaging investors and advancing economic reforms aimed at improving ease of doing business in the country.
“Together, let us continue building a prosperous, industrialised, and energy-secure Zimbabwe. Zimbabwe is open for business,” the Minister concluded.
Meanwhile, Zimbabwe’s latest petroleum agreement is expected to strengthen the country’s push towards energy self-sufficiency while enhancing investor confidence in the economy. It also signals that the country is serious about developing its energy sector through modern, transparent and internationally aligned frameworks.
