Zambia Zimbabwe Council of Ministers Approves Batoka Gorge Dam Project Contributions

• Zambia and Zimbabwe have committed $220 million each to the Batoka Gorge dam project from their 2026 budgets.
• The scheme is now exploring equity partnerships to improve bankability, shifting away from relying solely on debt.
• AFRY has been updating key studies since December in support of this revised approach.
• UNESCO granted permission for the project in late 2023 despite concerns over its proximity to Victoria Falls.

The contributions, totaling $440 million, are the first instance of public equity being committed to the project, which was conceived in 1972.

The Zambezi River Authority's Council of Ministers approved the contributions to the Batoka Gorge dam project in December 2025, marking a significant milestone for the scheme. The contributions, totaling $440 million, are the first instance of public equity being committed to the project, which was conceived in 1972. Zambia and Zimbabwe have each pledged $220 million from their 2026 budgets, setting the stage for a revised procurement process. This shift in approach is part of a broader effort to accelerate implementation, as agreed upon by Presidents Emmerson Mnangagwa and Hakainde Hichilema at the Bi-National Commission in Zimbabwe. The formal procurement process is now underway, with the ZRA holding a market sounding session at the Africa Energy Forum in June.

The Batoka Gorge dam project has undergone a significant transformation in its financing structure. Gone are the days of relying solely on debt; instead, the scheme is now exploring equity partnerships to improve bankability. This shift towards a public-private partnership model marks a departure from the previous approach, which led to a 2019 award to General Electric and PowerChina that Zambia withdrew from in 2023 due to procurement irregularities. The new model requires private developers to carry more state equity, changing the dynamics of the project. AFRY has been updating key studies since December, laying the groundwork for this revised approach.

The Batoka Gorge dam is not just any ordinary dam; it's a 181-metre arch-gravity dam designed to generate 2,400MW of power. The combined output will be split equally between Zambia and Zimbabwe, addressing the region's shared shortfall of around 1,500MW. UNESCO granted permission for the project in late 2023, despite concerns over its proximity to Victoria Falls. The Devils Gorge Hydro-Electric Scheme, another Zambezi project, is currently undergoing prefeasibility work by Tractebel Engineering. This dual approach has attracted developers who might not have been interested in a single project.

Lawyers and compliance officers should watch for the revised project timelines, which may impact their clients' investment or business decisions in the region. They should also be aware of the potential implications of a public-private partnership model on the dam's financing structure.

Source: Original reporting via [Source]