Zimbabwe distribution licences open to private operators on 25-year terms
Statutory Instrument 128 of 2026 sets out how a company other than ZETDC may distribute and sell electricity in Zimbabwe. Independent distribution operators will hold twenty-five year renewable licences awarded through competitive bidding, and the tariffs they charge cannot exceed ZETDC’s rates as approved by the Zimbabwe Energy Regulatory Authority.
The same instrument requires property developers to finance and build electricity infrastructure for new residential, commercial and industrial developments before selling or leasing serviced stands, with fines, imprisonment and permit suspension for those who do not. The measure is intended to stop ZETDC retrofitting power infrastructure into settlements already occupied.
Zimbabwe’s National Energy Compact under Mission 300 carries the commitment to private distribution and retail licensing, alongside regulations governing third-party access to the national grid. The compact also targets 520,000 new household connections a year to 2030, 320,000 on grid and 200,000 off it, against a current rate of 40,000 to 60,000.
ZETDC keeps the transmission network and will make substations and lines available for private use. No private operator has been named as an applicant or a licence holder under the new framework.
ZERA is changing how generation projects reach the market at the same time, replacing unsolicited bids with a competitive tender process from 2026. Chief Executive Edington Mazambani has said applicants have been “seeking licences for speculative purposes” and using them to raise finance rather than build.
