The mining industry, a key contributor to Zimbabwe's economic output, currently accounts for 70% of Foreign Direct Investment (FDI), 80% of exports, 19% of government revenue, 3% of formal employment, and 13.5% of national income, according to the Zimbabwe Investment and Development Agency (ZIDA). However, power shortages continue to limit the sector's growth potential.
The Chamber of Mines of Zimbabwe's State of the Mining Industry and Prospects for 2025 report revealed that the sector is currently consuming approximately 600MW of electricity. By 2025, this demand is expected to increase by 18%, pushing the required power capacity to about 700MW. Additionally, diesel consumption within the sector is forecasted to rise by 12%.
In a statement, Grid Africa, which operates in Zimbabwe, South Africa, Zambia, and Kenya, announced the landmark agreement with Huawei, highlighting the critical impact of the project on improving energy efficiency and sustainability in Zimbabwe's mining sector.
"This collaboration marks a significant breakthrough in improving energy efficiency and operational sustainability for Zimbabwe's mining sector, at a critical time when power blackouts have led to a US$500 million revenue loss for mining companies," Grid Africa said. The company added that the partnership will not only ease pressure on Zimbabwe's national grid but will also drive down operational costs for mining companies and ensure an uninterrupted power supply.
Grid Africa's Chief Executive Officer, Norman Moyo, emphasized the transformative potential of the solar energy initiative: "By integrating solar solutions through this landmark collaboration with Huawei, we are poised to bring about a transformative positive impact on the mines in Zimbabwe. This initiative will not only optimise energy usage but also provide a sustainable power source that will enhance the operational efficiency and financial stability of the mining sector."
Huawei's President for Digital Power in Sub-Saharan Africa, Xia Hesheng, echoed the importance of the project: "We are excited to merge our solar expertise with Grid Africa to empower Zimbabwe's mining industry with clean, dependable energy sources. This partnership highlights our dedication to driving sustainable progress, fostering long-term operational sustainability, and reshaping the industrial energy landscape in the region."
The 72MW solar project is expected to provide numerous benefits, including reducing reliance on the national grid, lowering operational costs, and enhancing the overall resilience of mining operations. The project is also anticipated to create between 1,152 and 3,744 jobs, both directly and indirectly, while contributing to foreign currency savings by offsetting electricity imports.
As a global leader in technology, Huawei's involvement in this project underscores the integration of cutting-edge innovations with a strong commitment to sustainability. The Grid Africa-Huawei partnership is expected to set a new benchmark for companies focused on improving operational efficiency and environmental stewardship while driving transformative changes in energy consumption across Zimbabwe's industrial sector.
