Karo Platinum, a developer in the platinum group metals (PGM) sector, has announced a comprehensive energy strategy intended to support its mining operations in Zimbabwe while addressing broader electricity supply challenges. The initiative is designed to reinforce energy reliability and align with regional infrastructure cooperation and private-sector efforts to stabilise industrial power supply.
The strategy was presented ahead of the company’s planned bond listing on the Victoria Falls Stock Exchange, signalling its intention to attract investor confidence by reducing energy-related operational risks. It also reflects a wider trend among mining firms in Southern Africa, particularly in countries experiencing grid instability, to invest in self-generation and diversified energy solutions.
Zimbabwe’s power sector has long faced structural difficulties, including ageing infrastructure, limited generation capacity, and weather-related constraints on hydroelectric output. Electricity generation frequently falls short of national demand, which is estimated to exceed 2,000 MW. In recent years, supply has fluctuated between 1,000 MW and 1,400 MW, contributing to periodic load-shedding and production delays across multiple sectors, including mining—one of Zimbabwe’s primary sources of foreign revenue.
To mitigate such risks, Karo Platinum has entered a power supply agreement with the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), enabling access to electricity from the Selous substation. The substation is integrated into the Southern African Power Pool (SAPP), a regional power-sharing network that facilitates electricity transfers between member countries including Mozambique, Zambia, and South Africa.
According to Karo representatives, the company is collaborating with fellow mining operator Zimplats to upgrade the Selous substation. Current infrastructure includes two 300 MVA transformers, and the plan involves adding four 175 MVA transformers to enhance capacity and introduce redundancy. This upgrade is expected to improve stability for large-scale industrial users and reduce vulnerability to equipment failures.
In addition to regional grid access, Karo Platinum is advancing a renewable energy component. A 30 MW solar photovoltaic (PV) plant is under development near Chegutu, close to the company’s mining site. Financed through a third-party investor, the project is expected to meet a portion of the mine’s electricity demand and potentially contribute surplus energy to the national grid.
The approach reflects growing interest in hybrid energy models that blend conventional grid access with renewable energy, particularly in regions where public infrastructure may not fully meet industrial needs. Mining operations, due to their high energy intensity, are often among the first to pursue such diversification strategies.
Karo’s investment plan is consistent with Zimbabwe’s national policy direction, which encourages private sector participation in energy development as part of its US$12 billion mining economy roadmap. This policy framework seeks to improve resilience and attract foreign direct investment by ensuring a more reliable power supply for key industries.
While the long-term impact of Karo’s energy strategy will depend on implementation timelines and regional energy dynamics, the initiative underscores a shift in how private entities are adapting to energy security challenges in sub-Saharan Africa. It may also contribute modestly to grid stability in the surrounding regions, depending on capacity sharing arrangements and surplus availability.
