The solar energy industries in Zimbabwe and Zambia present compelling opportunities for growth, driven by abundant sunshine, increasing energy demand, and supportive policy frameworks. Both countries face significant energy challenges that solar power is uniquely positioned to address, particularly given their vulnerability to climate change impacts on traditional hydropower generation. This analysis provides Pristine Power Solutions with a comprehensive overview of market conditions, challenges, opportunities, and strategic recommendations for entering or expanding operations in these promising Southern African markets.
Market Overview: Zimbabwe
Current Solar Energy Landscape
Zimbabwe’s solar energy sector is at an inflection point, with significant potential yet to be fully realized. The country boasts excellent solar resources, with an average solar irradiation of 20MJ per square meter per day and approximately 3,000 hours of sunshine annually . Despite these favorable conditions, solar currently represents a small fraction of the country’s energy mix, with only one operational solar PV project among licensed Independent Power Producers (IPPs) contributing just 2% of the 131 MW from renewable IPPs .
The installed renewable energy capacity reached 1,211 MW in 2021 (up from 878 MW in 2015), with hydropower dominating at 1,081 MW . Solar’s contribution remains modest but is poised for growth under the government’s National Renewable Energy Policy (NREP), which aims to generate 1,100 MW from renewable sources (including solar) by 2025 as part of the National Development Strategy .
Key Market Drivers
Energy Deficit: Zimbabwe faces chronic power shortages with demand estimated at 4,000 MW against actual generation of about 1,500 MW . The mining sector alone is projected to require 2,000 MW by 2025 .
Policy Support: The NREP sets ambitious targets including installation of 250,000 solar geysers by 2030 and promotes solar mini-grids, off-grid solutions, and solar water pumping . Incentives include tax holidays, duty-free importation of solar equipment, and 100% repatriation of profits .
Rural Electrification: With only 19% rural electrification , decentralized solar solutions offer the most viable path to energy access for Zimbabwe’s predominantly rural population.
Climate Resilience: Recent droughts have exposed vulnerabilities in hydropower-dependent systems, making solar an attractive alternative .
Challenges and Barriers
High Upfront Costs: Despite decreasing global prices, initial investment remains prohibitive for many households and businesses .
Grid Limitations: Zimbabwe’s aging grid infrastructure struggles to integrate variable renewable energy sources .
Financing Constraints: Limited access to affordable, long-term financing hinders project development .
Skills Gap: Shortage of trained professionals for design, installation, and maintenance of solar systems .
Recent Developments
In December 2022, Zimbabwe announced agreements for 27 solar IPP installations totaling 1 GW, representing about $1 billion in investment .
The UN SDG Fund approved a $45 million program to catalyze renewable energy investments in Zimbabwe .
The Batoka Gorge hydropower project (2,400 MW shared with Zambia) may complement solar expansion by providing baseload power .
Market Overview: Zambia
Current Solar Energy Landscape
Zambia’s solar industry is gaining momentum as the country seeks to diversify from hydropower dependence (80% of generation) following severe drought impacts . Solar currently accounts for less than 1% of electricity generation but is the focus of aggressive expansion plans .
The government has set a target to add 1,000 MW of solar capacity by end of 2025 , supported by recent policy reforms including a dramatic reduction in solar project approval timelines from six months to just 48 hours .
Key Market Drivers
Energy Crisis: Drought-induced power shortages have led to up to 20-hour daily outages, crippling businesses and households . The 2024 drought caused $1.3 billion in economic losses .
Policy Acceleration: The 48-hour approval window for solar projects demonstrates strong government commitment to rapid solar deployment .
Rural Access: With 50% electrification rate (up from 30% in 2017), solar mini-grids are prioritized to reach the remaining population . The Presidential 1000 Mini-Grid Initiative aims to deploy 200 mini-grids by 2030 .
Regional Leadership: Zambia is part of “Mission 300,” an Africa-wide effort to connect 300 million people to electricity by 2030 .
Productive Use Focus: Solar deployment emphasizes income-generating applications like irrigation, milling, and refrigeration to boost livelihoods .
Challenges and Barriers
Hydropower Dependence Mindset: Despite recent crises, hydropower remains deeply ingrained in energy planning .
Financing Gaps: While policy environment has improved, access to affordable project finance remains challenging .
Land Access: Securing suitable land for solar projects requires cooperation with traditional leaders .
Technical Capacity: Rapid scaling requires parallel investments in workforce training and institutional strengthening.
Climate Risks: Solar infrastructure must be designed to withstand extreme weather events like flash floods .
Recent Developments
The 100 MW Chisamba Solar Power Plant is part of a 1,000 MW solar expansion plan .
Zambia is implementing the Solar for Health project to power 400 health facilities with solar systems .
The government is developing clearer policies, streamlined procedures, and bankable power purchase agreements to attract investment .
Comparative Analysis: Zimbabwe vs. Zambia
Factor
Zimbabwe
Zambia
Solar Resources
20MJ/m²/day, 3,000 sun hours
Similar high irradiation levels
Market Stage
Emerging, few operational projects
Accelerating with policy reforms
Policy Support
NREP targets, tax incentives
48-hour approvals, 1,000MW target
Key Driver
Mining sector demand
Drought-induced crisis
Rural Focus
19% electrification
50% electrification
Grid Integration
Aging infrastructure
More stable but needs expansion
Financing
Limited long-term options
Improving with World Bank support
Opportunities for Pristine Power Solutions
Zimbabwe Opportunities
Commercial and Industrial (C&I) Solar: Mining sector’s 2,000 MW demand by 2025 presents prime opportunity for large-scale solar solutions .
Solar Water Heating: Government target of 250,000 solar geysers by 2030 creates mass market potential .
Mini-Grid Development: Rural areas with 19% electrification rate need decentralized solutions .
Agricultural Solar: Solar irrigation can boost productivity for Zimbabwe’s agro-based economy .
IPP Partnerships: Numerous licensed but unbuilt solar projects (661 MW across 17 projects) need implementation partners .
Zambia Opportunities
Utility-Scale Solar: 1,000 MW government target with fast-tracked approvals .
Mini-Grid Deployment: 200 mini-grids planned by 2030 under presidential initiative .
Health Sector Solar: 400 health facilities targeted for solarization .
Productive Use Systems: Solar-powered equipment for agriculture and small businesses .
Hybrid Systems: Combining solar with other renewables to ensure reliability .
Strategic Recommendations for Pristine Power Solutions
Market Entry Strategy:
Zimbabwe: Focus initially on C&I sector (mining, manufacturing) to establish credibility before expanding to rural solutions.
Zambia: Leverage accelerated approvals to quickly deploy utility-scale projects while developing mini-grid expertise.
Partnership Approach:
Collaborate with Zimbabwe’s REAZ (Renewable Energy Association) and Zambia’s AMDA (Africa Minigrid Development Association) .
Partner with development organizations like UNDP implementing Solar for Health in Zambia .
Product Portfolio:
Develop tiered solutions from small-scale solar home systems to large utility plants.
Emphasize productive use equipment (irrigation, milling) to differentiate offerings .
Financing Models:
Implement PAYGO systems leveraging Zimbabwe’s high mobile money penetration .
Access development finance through programs like World Bank’s ESAP in Zambia .
Policy Engagement:
Advocate for consistent regulations in Zimbabwe .
Participate in Zambia’s streamlined approval process to demonstrate speed-to-market .
Workforce Development:
Invest in training programs to address skills gaps in both markets .
Prioritize gender-inclusive hiring to align with UNDP’s productive use roadmap in Zambia .
Technology Innovation:
Explore agrivoltaics (as practiced by Pristine Sun) to maximize land use efficiency .
Incorporate battery storage to address intermittency concerns.
Risk Assessment and Mitigation
Policy Risk (Zimbabwe):
Mitigation: Seek guarantees under IPP protections, partner with ZIDA .
Currency Risk (Both):
Mitigation: Structure contracts in USD, utilize 100% repatriation guarantee in Zimbabwe .
Mitigation: Localize some components, maintain diversified supplier network.
Future Outlook
Both Zimbabwe and Zambia are poised for significant solar growth, though their trajectories differ:
Zimbabwe must overcome structural challenges but offers substantial untapped potential, particularly if policy consistency improves. The 1 GW solar IPP pipeline indicates strong investor interest .
Zambia is moving faster with proactive reforms and crisis-driven urgency. The 48-hour approval policy could make it a regional leader in solar deployment .
Climate change will continue to be a major driver in both countries as droughts make hydropower less reliable . Solar’s role in energy security will only grow, supported by global trends toward renewable energy and decreasing technology costs.
For Pristine Power Solutions, these markets offer complementary opportunities—Zambia for rapid scale-up and Zimbabwe for first-mover advantage in a market with enormous unmet demand. A dual-country strategy would allow the company to balance risk while building regional expertise in Southern Africa’s evolving solar landscape.
Conclusion
The solar energy industries in Zimbabwe and Zambia present compelling opportunities for Pristine Power Solutions, albeit with distinct market characteristics and challenges. Zimbabwe offers significant growth potential in C&I solar and rural electrification, though requires navigation of a more complex business environment. Zambia’s crisis-driven solar expansion and streamlined policies enable faster market entry but with potentially more competition.
By adopting tailored strategies for each market—focusing on policy-supported segments, leveraging international partnerships, and emphasizing innovative financing and technology solutions—Pristine Power Solutions can establish itself as a leader in Southern Africa’s solar revolution. The company’s expertise in comprehensive power solutions positions it well to address these markets’ urgent needs for reliable, sustainable energy.
