By Zachary Gava
Harare , (New Ziana) -The government has approved the restructuring and reorganisation of the Zimbabwe Electricity Supply Authority (ZESA) Group to pave way for the power utility to operate as a single, vertically integrated entity in a major reform aimed at improving efficiency, accountability and energy security.
The development was announced by Information, Publicity and Broadcasting Services Minister Zhemu Soda during Tuesday’s post-Cabinet media briefing, where he said the restructuring was part of broader government drive to achieve energy self-sufficiency in line with the Vision 2030 agenda.
Soda said the principal workstreams of the restructuring had been substantially completed and had now entered the implementation phase following the transfer of ZESA Group’s shareholding to the Mutapa Investment Fund.
“The strategic corporate restructuring intends to create a bankable, accountable and operationally integrated electricity platform,” he said.
Under the new model, ZESA (Private) Limited will serve as the central operating company, bringing together generation, transmission, distribution, system planning, commercial services and shared corporate functions that were previously administered through separate entities.
The move marks a significant reversal of the fragmented structure created when ZESA was unbundled nearly two decades ago into specialised subsidiaries, including the Zimbabwe Power Company (ZPC), responsible for generation, and the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), which handles transmission and distribution.
The earlier unbundling was intended to improve efficiency and introduce greater commercial discipline, but over time the fragmented structure was criticised for creating duplication, multiple boards, bureaucratic layers and coordination challenges across an electricity system whose different components are inherently interdependent.
The latest restructuring seeks to address those shortcomings by placing the electricity value chain under a single operating structure.
Soda said the integrated model would improve coordination across critical areas ranging from power generation and transmission to distribution, maintenance, outage management and investment planning.
“Consequently, a single operating company will allow for enhanced coordination of all electricity value chain facets from generation, transmission, distribution performance, outages, maintenance planning, load forecasting and investment prioritisation to consumption, on a single integrated command structure,” he said.
The reform is also expected to make ZESA more attractive to investors and financiers by creating what Government describes as a more bankable and commercially accountable electricity platform.
The move comes as Zimbabwe seeks to address persistent electricity supply challenges and mobilise investment into new generation capacity, transmission infrastructure and renewable energy projects.
The Mutapa 2024 annual report identified the rebundling of ZESA and its subsidiaries as a key initiative for improving operational and financial efficiency, while highlighting investment in base-load generation, solar photovoltaic projects and transmission infrastructure as priorities.
The Mutapa Investment Fund has also previously indicated that the restructuring is intended to reduce operational fragmentation and create a more efficient platform capable of attracting capital for the power sector.
Its latest audited report said the ZESA rebundling had materially improved transparency, accountability and investment readiness, creating a foundation for capital mobilisation into generation, grid and transmission infrastructure.
The restructuring therefore comes at a critical juncture for the country, where reliable electricity supply is central to industrial recovery, mining, agriculture and the broader attainment of the country’s economic development objectives.
The government now expects the implementation of the approved structure to translate into better coordination, reduced duplication and more effective deployment of resources across the electricity value chain.
Soda said the ultimate objective is to build an electricity utility capable of supporting Zimbabwe’s drive towards energy self-sufficiency and the achievement of Vision 2030.
The development also reinforces the wider government push to reform State-owned enterprises under the Mutapa Investment Fund, with the sovereign wealth fund pursuing restructuring, governance reforms and improved financial performance across its portfolio.
Zimbabwe’s National Development Strategy 2 (2026–2030) specifically requires Mutapa to restructure and enhance the viability of its portfolio companies while mobilizing investment to support economic growth and reduce fiscal pressures.
New Ziana
