Investing in Zimbabwe

WATER
Zimbabwe, like many other countries in Africa, has a limited rainfall during the months of November to March. Due to a well-developed dam system sufficient water is guaranteed in al the main centres to support local populations and project development. In the agricultural areas dams supported by a borehole system drawing on underground reserves, provide sufficient water for the farming sector.

One of the best-known dams in the world, Lake Kariba, on the border of Zimbabwe and Zambia, provides sufficient water to operate a major hydroelectric power station, support a thriving commercial fishing industry while at the same time catering for tourist facilities.

The Zimbabwe Government has an ongoing programme to develop more dams or borehole facilities to provide potable water throughout the country and to develop additional agricultural resources. In this area, there is opportunity for the investor to construct new dams and provide water on a commercial basis to consumers in all sectors.

A major dam project is being undertaken to build a dam at the confluence of the Gwaai/Shangani Rivers to supply the city of Bulawayo and surrounding agricultural areas with guaranteed water. It will also offer the investor numerous opportunities to develop agricultural based projects and participate in the development of a new tourist area.

ELECTRICITY
The Zimbabwe Electricity Supply Authority maintains a number of thermal power stations throughout the country, the best known being at Hwange. It is also responsible for the operation of the hydro power station at Kariba and for links through a Southern African power grid linking the countries of the Southern African region and the Democratic Republic of Congo.

New projects are planned including an 800Mw gas turbine power station and a 1000Mw thermal station at Gokwe, both of which are proposed for private development on a build, operate and transfer basis. At the same time Government is pursuing the Hwange 7 and 8 extension and detailed feasibility studies have already been carried out. With the implementation of these major development projects, the opportunity will arise for the establishment of downstream service industries.

The Southern African Development Community energy protocol, which requires member countries to co-operate through the pooling of energy resources for the benefit of the region, was ratified on May 19 1998. Zimbabwe was the ninth country in the fourteen-member organisation to ratify the protocol, which provides for the establishment for the commission that will formulate, develop and co-ordinate regional energy policies and programmes. This will include sound environment management and will promote and assist the attainment of the region's economic and social objectives. The Zimbabwe Electricity Supply Authority is acknowledged as one of the providers of the cheapest industrial power in the region.