Source: Zesa, Chinese partnership to save over US$20m annually – herald
Zvamaida Murwira
Senior Reporter
ZESA Enterprises, a subsidiary of Zesa Holdings, is poised to save over US$20 million annually following a partnership with the Chinese firm Shanghai Jinghai Electric Company to establish a local manufacturing and assembly plant for smart meters, switchgears and electric vehicle chargers.
The savings will stem from eliminated shipping costs and the avoidance of attendant delays, while the partnership is also expected to help conserve foreign currency, enhance electricity reliability, improve billing accuracy and reduce reliance on fossil fuels.
Cabinet has since approved the deal, which is structured as a public-private partnership, giving further impetus to the Government’s drive for collaboration between the public and private sectors.
In an interview, ZENT managing director Dr Godfrey Mugaviri described the partnership as a game-changer in addressing several power-related issues, citing the inherent challenges of importing kits.
“Over US$20 million will be saved during the course of the process and in terms of cost, shipping and so forth, there will be no more costs related to constant delays like when the plant of the supplier will be said to be down,” said Dr Mugaviri.
He outlined the significance of manufacturing these components locally.
“Each product plays a vital role in enhancing Zimbabwe’s energy infrastructure and aligns with national development strategies, including the National Development Strategy 2 (NDS2) and Vision 2030,” he said.
“The Joint Venture between ZENT and Shanghai Jinghai Electric Company of China aims to manufacture and distribute power distribution products and smart meters.
“The firm will initially hold 70 percent of the shares and ZENT 30 percent shares with ZENT increasing its stake over time. The partnership will address the electricity needs of Zimbabwe and the regional market and contribute to the country’s electrification goals.”
Dr Mugaviri detailed the broad benefits expected from the venture.
“This JV is expected to attract significant foreign direct investment, boosting economic growth and creating jobs, and improving Zimbabwe’s livelihoods. The JV will drive total electrification and reduce import reliance, which strengthens economic stability and preserves foreign currency. The JV aligns with Zimbabwe’s Vision 2030 and National Development Strategy 2.”
On the specific products, Dr Mugaviri said that switchgears will enhance electricity distribution reliability, minimise outages and support maintenance for ZESA.
“It helps replace aging infrastructure, ensuring a stable power supply crucial for Zimbabwe’s economic growth. It aligns with national infrastructure goals, promotes socio-economic development, and creates jobs in engineering, assembly, and technical support, particularly for youth.”
Regarding smart meters, he said, “They improve billing accuracy, reduce theft, and enable real-time monitoring for ZESA. They empower consumers with usage data to promote energy conservation and efficiency, while supporting universal electricity access, especially in underserved areas. Smart meters also create jobs in production, installation, and maintenance, offering skills training for youth.”
On electric vehicle chargers, Dr Mugaviri said.
“They facilitate electric vehicle integration into the national grid, reducing fossil fuel reliance and supporting sustainability. They contribute to EV infrastructure development, aligning with goals to cut greenhouse gas emissions and transition to renewable energy. This sector creates job opportunities in engineering, maintenance, and construction, engaging youth in a growing market.”
Concerning control panels, he noted, “They improve the control and monitoring of electrical systems, ensuring safety and reliability in ZESA’s distribution networks. These panels support industrial growth and modernization of the energy sector, creating direct and indirect job opportunities in electrical engineering and manufacturing for youth.”
The approval was confirmed by Information, Publicity and Broadcasting Services Minister, Dr Jenfan Muswere, during a post-Cabinet briefing in Harare last week.
The Minister said that the country faces a growing need for modern switchgears as the national grid expands and old equipment is phased out.
Dr Muswere said the collaboration will “position Zimbabwe as a hub for the supply of switchgears in the SADC region.”
In a related development, ZENT has dramatically increased its transformer production, now targeting 10 000 units annually — a massive leap from just 600 three years ago and a current output of about 3 000.
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