Zambia and Zimbabwe have revived efforts to secure financing for the $5 billion (R91-billion) Batoka Gorge hydropower project, as both nations face growing electricity demands amid drought induced power shortages.
The two Southern African countries are jointly seeking investors for the 2,400-megawatt (2.4GW) facility, which will be constructed near the iconic Victoria Falls, a UNESCO World Heritage Site.
The project, initially scheduled to begin in 2020, has faced multiple delays due to the Covid-19 pandemic and procurement challenges.
The Zambezi River Authority (ZRA), a joint venture between the governments of Zambia and Zimbabwe, has formed a resource mobilisation team to attract financing for the project.
In an emailed response to questions, ZRA chief executive officer Munyaradzi Munodawafa said the agency is targeting a timeframe of 12 to 18 months to secure funding.
The timeline will depend on market conditions, investor confidence, and continued government support from both countries.
“The resource mobilisation effort is targeting a time frame of 12 to 18 months, subject to investor confidence, market conditions and ongoing bilateral support from the governments of Zambia and Zimbabwe,” Munodawafa noted.
In 2019, a contract was awarded to a consortium including General Electric and Power Construction of China.
However, Zambia announced its withdrawal from the agreement last year, citing irregularities in the procurement process.
Both countries are now seeking new bidders, with a target of final selection by September 2025.
Despite the renewed push, economic realities may complicate financing.
Both nations are in debt distress. Zimbabwe owes creditors over $21 billion, while Zambia is still restructuring its debt after defaulting five years ago.
“It may be very expensive to mobilise for both countries,” said Prosper Chitambara, a Harare-based economist. “The costs will be on the high side given the debt distress both Zambia and Zimbabwe are facing.”
To support power generation at Kariba Dam and ensure a steady water supply for the Batoka Gorge project, Zambia and Zimbabwe are also considering a controversial plan to divert water from the Congo River.
The proposal would involve transferring up to 16 billion cubic metres of water annually to Lake Kariba to stabilise inflows, which have declined due to prolonged droughts linked to El Niño.
As both nations move forward with the Batoka Gorge project, concerns around funding, water supply, and environmental impact remain central to discussions, even as energy demand in the region continues to rise.
