Zambia and Zimbabwe Revive $5 Billion Hydro Dam Project, Seeking Investors

Reese Morgan

Reese Morgan

May 03, 2025 · 3 min read
Zambia and Zimbabwe Revive $5 Billion Hydro Dam Project, Seeking Investors

Zambia and Zimbabwe are stepping up efforts to attract investment for the long-stalled $5 billion Batoka Gorge hydropower project, reviving a controversial proposal to source water from the Democratic Republic of Congo. The Zambezi River Authority, a joint agency between the two nations responsible for managing the Kariba Dam, has assembled a dedicated team to engage investors for the proposed 2,400-megawatt plant.

The project, originally slated to begin construction in 2020, faced delays due to the COVID-19 pandemic and challenges in securing financing. In a major shake-up last year, Zambia cancelled a 2019 contract awarded to General Electric Co. and China's Power Construction Corp., citing procurement irregularities. The two countries now aim to select new bidders by September 2025.

However, fundraising efforts are complicated by both countries' financial woes. Zimbabwe is grappling with $21 billion in debt, while Zambia remains in default and is still negotiating a debt restructuring deal, five years after missing its loan payments. The debt challenges threaten to derail the project, which is critical for addressing the growing threat of erratic rainfall linked to climate change.

To strengthen the Kariba Dam's capacity and address the reduced inflows into Lake Kariba, Zambia and Zimbabwe are considering a bold plan: diverting up to 16 billion cubic meters (4.3 trillion gallons) of water annually from the Congo River. The move could help stabilize inflows into Lake Kariba, which currently supplies about half of both countries' electricity, but it comes with major hurdles, such as the steep energy requirements for pumping water uphill and the difficult terrain.

Lake Kariba, the world's largest man-made reservoir, has suffered from reduced inflows due to repeated El Niño-driven droughts. Compounding the problem, both nations have frequently exceeded their agreed water usage quotas, further straining the dam. The proposed hydro dam project is seen as a critical step towards addressing the region's energy needs, but it must navigate the complex web of environmental and financial challenges.

The revival of the Batoka Gorge hydropower project comes at a time when Africa is increasingly looking to renewable energy sources to power its growth. The project's success could have significant implications for the region's energy landscape, providing a much-needed boost to the economies of Zambia and Zimbabwe. However, it remains to be seen whether the two countries can overcome their debt challenges and environmental concerns to bring the project to fruition.

As the region continues to grapple with the challenges of climate change, the Batoka Gorge hydropower project serves as a reminder of the importance of sustainable energy solutions. With the right investment and support, the project could become a beacon of hope for Africa's energy future, providing clean and reliable power to millions of people. But for now, it remains a complex and challenging undertaking that will require careful planning and execution to succeed.

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