Zambia and Zimbabwe are reviving the USD 5 billion Batoka Gorge hydroelectric project. The goal is to build a 181-meter-high dam and a 2,400 MW power plant on the Zambezi River, approximately 30 km downstream from Victoria Falls.
Doubling the combined energy capacity of the two countries
This project aims to double the combined energy capacity of the two countries, which is experiencing almost daily power outages, exacerbated by the falling water level of the Kariba Dam due to drought and El Niño.
The revival comes despite a challenging economic climate. Zambia has been in default since 2020, and Zimbabwe has a high external debt, making it difficult to secure the necessary financing. Following the cancellation of the initial contract with General Electric and PowerChina in 2023 due to irregularities, a new tender is planned before September 2025 to attract new investors.
The project could create approximately 10,000 direct and indirect jobs and strengthen the energy independence of both countries, while participating in the Southern African Power Pool regional electricity market. At the same time, Zambia is also developing solar projects to diversify its energy mix in the face of climate change.
How could the two countries attract international investors?
Zambia and Zimbabwe could attract international investors for their hydropower project by creating a favorable regulatory framework, ensuring political and economic stability, and improving the necessary infrastructure.
They are also considering launching a new call for tenders to attract investor interest following the cancellation of the previous contract, demonstrating their commitment to offering transparent and attractive terms. Furthermore, they could leverage international investment agreements to:
- Guarantee investor protection
- Offer financial or tax incentives
- Build the confidence of foreign partners
