ZESA Holdings has secured approval for a US$70 million loan from Stanbic Bank to rehabilitate Hwange Power Station’s Unit Five, which is expected to return to service in the third quarter of 2027, as the country moves to strengthen electricity generation amid anticipated water shortages at Kariba Dam.
ZESA Group chief executive officer, Engineer Cletus Nyachowe confirmed the loan approval.
“The bank approved the loan facility, but we await an offer letter this November,” he said.
Unit Five, which has an installed capacity of 220 megawatts (MW) and an achievable output of 165MW, has been offline since July 22, 2022, following damage to its turbine. Its rehabilitation had been delayed by a lack of funding.
Nyachowe said restoring the unit would be critical in cushioning the impact of reduced electricity generation at Kariba Hydropower Station in 2027, when the power station is expected to operate under a reduced water allocation.
The anticipated return of Unit Five forms part of ZESA’s efforts to diversify electricity generation sources and reduce the country’s vulnerability to declining water levels at Kariba Dam.
“ZESA is also considering drawing more water for power generation during the first and second quarters of 2027, in anticipation of Unit Five’s return to service later in the year.
“The additional generation from Hwange would help compensate for reduced output at Kariba,” he added.
This development is part of ZESA’s broader efforts to boost electricity generation and stabilize national power supply. The project is expected to strengthen the country’s electricity supply by restoring up to 165MW of achievable generating capacity, easing pressure on the national grid as Zimbabwe prepares for potential drought-related constraints on hydropower generation.
