Zimbabwe and Zambia have agreed to inject a combined US$440 million to kick-start construction of the long-delayed Batoka Gorge Hydro-Electric Scheme, a project viewed as vital to strengthening regional energy security.
Under the agreement, each country will contribute US$220 million in equity to support early construction works on the US$4.2 billion project. The decision was taken during a meeting of the Zambezi River Authority Council of Ministers held in Victoria Falls on Monday.
The funding will be channelled through a Public-Private Partnership (PPP) model, with project timelines set to be reviewed to accelerate implementation after years of delays.
Zimbabwe’s Minister of Energy and Power Development, July Moyo, who is expected to chair the council in 2026, said the equity injection is aimed at improving the project’s bankability and attracting private investors.
He said the council had reaffirmed its commitment to the PPP framework and approved the equity contributions from both governments, including the exploration of equity partnerships to strengthen financial viability as construction planning moves into the 2026 budget cycle.
According to the council, feasibility studies for the project have been updated, while additional financial and technical advisers have been engaged as preparations move closer to financial close. A Resource Mobilisation Committee, co-chaired by the two countries’ finance ministers, has also been established to raise funding for public infrastructure linked to the scheme.
Once completed, the Batoka Gorge project will be jointly owned by Zimbabwe and Zambia and is expected to add significant new generation capacity to both national power grids, easing electricity shortages and supporting economic growth.
The ministers also reviewed progress on other initiatives managed by the Zambezi River Authority, including the planned 600-megawatt Kariba floating solar project, with the first 150 megawatts scheduled for commissioning by mid-2026. Updates were also provided on the ongoing Kariba Dam Rehabilitation Project, which is critical to the long-term safety and performance of the dam.
The renewed momentum around Batoka Gorge signals a broader push by both governments to secure sustainable energy sources as demand continues to rise across the region.
