Zimbabwe is steadily developing a local electricity infrastructure value chain, with ZESA Enterprises (ZENT) now producing enough transformers to meet domestic requirements while expanding into regional export markets.
The development is reducing the country’s reliance on imported electricity equipment and strengthening the use of locally available raw materials, including steel and copper.
The progress came under the spotlight when Energy and Power Development Minister July Moyo toured the ZENT manufacturing plant in Harare, where the company is producing and repairing an average of 300 transformers a month.
Minister Moyo said the developments at ZENT demonstrated the role of State-owned enterprises in supporting industrialisation while reducing pressure on the country’s foreign currency resources.
“This is what Government is encouraging local state-owned enterprises to do. Increase production and productivity in a manner that reduces the burden on the national fiscus, but for ZENT they are also exporting into the region, which signifies a key development.”
ZENT Acting Managing Director Engineer Philemon Dhafana said the company had successfully substituted imported transformers with locally manufactured products.
“On average, we are producing and repairing about 300 transformers per month, and we are using local steel from Manize and copper, so the use of local materials is on display here. We have managed to substitute all imports of transformers and are now exporting into the region.”
The expansion of local manufacturing is in line with Government’s industrialisation drive, which seeks to strengthen domestic value chains, promote import substitution, create employment and increase productivity.
Buy Zimbabwe executive director Munyaradzi Hwengwere said ZENT’s growth represented an important transformation in the country’s electricity infrastructure value chain.
“Local production is going up, but for ZENT it means we are witnessing a transformation in the electricity infrastructure value chain that harnesses industrial linkages and value chains.”
Africa Economic Development Strategies executive director Professor Gift Mugano said the development would give fresh impetus to Zimbabwe’s local content policy by retaining more value within the domestic economy.
“The local content policy has got a huge impetus now that ZENT is leading the way in the production of transformers and they have set sights on producing concrete poles and power transmitters, which effectively means that we are now saving on foreign currency, which is being reflected on the balance of payments.”
ZENT’s expansion comes under the new rebundled ZESA Holdings structure, with the company operating as a stand-alone special purpose vehicle focused on manufacturing key electricity supply and distribution equipment.
The company is expected to leverage Zimbabwe’s local steel and copper resources while broadening production into other equipment required across the power sector.
The developments highlight the potential for increased local manufacturing to support the electricity sector, reduce import dependence and create opportunities for Zimbabwean products in regional markets.
