Zambia and Zimbabwe Recommit $4.2bn to Batoka Gorge Hydropower Project Amid Power Shortages
Zambia and Zimbabwe have taken a decisive step to strengthen their energy security after agreeing to each commit $220 million toward restarting construction of the long-delayed $4.2 billion Batoka Gorge Hydropower Project, a major cross-border infrastructure initiative expected to significantly boost electricity supply in both countries.
The proposed 2,400-megawatt hydropower plant, to be developed on the Zambezi River near the Victoria Falls World Heritage site, is designed to provide a long-term solution to persistent power shortages that have constrained economic growth across southern Africa. Once completed, the facility will supply power equally to Zambia and Zimbabwe, reinforcing regional energy cooperation.
According to the Zambezi River
Authority (ZRA), the bi-national agency responsible for managing the Kariba Dam and overseeing the Batoka Gorge development, the two governments will complement their initial funding commitments by actively seeking equity partners to enhance the project’s bankability and attract large-scale private and institutional investment.
In a major governance milestone, a Joint Council of Ministers from both countries has approved the establishment of a resource mobilisation committee mandated to coordinate financing for the publicly owned dam infrastructure. Bloomberg reports that the committee will play a central role in structuring funding arrangements and engaging potential investors and development finance institutions.
The renewed push comes in the wake of a severe regional power crisis, triggered by prolonged drought conditions that sharply reduced water levels at the Kariba Dam last year. The resulting drop in hydroelectric generation led to widespread power outages in both countries, underscoring the urgent need to diversify and expand power generation capacity.
Progress on the Batoka Gorge project has previously been stalled by financing challenges and disruptions caused by the COVID-19 pandemic. Further setbacks occurred in 2019 when Zambia withdrew from an engineering, procurement, and construction (EPC) contract awarded to General Electric and China Power Construction Corporation, citing concerns over procurement irregularities.
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The ZRA has now confirmed that engineering feasibility assessments and environmental impact studies are actively underway, marking a fresh phase in the project’s development. In addition, financial, technical, and legal advisers have been appointed to support project structuring and ensure compliance with international standards as authorities work to bring the landmark hydropower initiative back on track.
If delivered as planned, the Batoka Gorge Hydropower Project is expected to become one of southern Africa’s most significant energy assets, bolstering grid stability, supporting industrial expansion, and reducing vulnerability to climate-related power shocks in the region.
