KEY POINTS
- Zimbabwe holds 40 trillion cubic feet of recoverable gas in Lupane but struggles to attract investors.
- The lack of investment is stalling the country’s potential to capitalize on this major energy resource.
- Government efforts to secure foreign investors have not yet materialized, delaying economic benefits.
This is a huge resource that Zimbabwe is yet to exploit and the potential recoverable gas reserve is estimated at 40 trillion cubic feet in Lupane. However, the government has not been able to mobilize the required capital investment to unlock this resource which could potentially be a game changer for the country’s economy and energy sector.
Lupane gas reserves are found in Matabeleland North and the Zimbabwean government has been aware of their existence for quite some time now.
However, attempts to monetize this natural resource have been slow, mainly because of challenges in sourcing for investors.
While the global demand for energy resources increases, Zimbabwe is still stagnant, unable to realize the potential of the country’s gas resources.
 Lost chances in a new economy
Natural gas is fast becoming a critical component of the global energy mix and Zimbabwe has been estimated to have some of the largest reserves in Africa.
The Lupane fields contain approximately 40 trillion cubic feet of gas which if exploited could meet the country’s energy requirements and export the excess.
However, the lack of investment partners has remained a major setback that has denied the country the opportunity to join the league of other nations that produce gas.
The government’s efforts to lure foreign firms to develop the fields have not been fruitful.
New Zimbabwe reported that the officials have admitted that it is hard to get funding and technical support for the project, especially in the current Zimbabwean economy which is characterized by policy changes.
Some of the potential investors have mentioned issues to do with economic instability and regulatory issues as factors that would deter them from investing.
Economic potential and benefits
If explored and exploited, the Lupane gas reserves have the potential to change the face of Zimbabwe’s economy. The country is currently experiencing energy deficits, and it has to import electricity to meet the demand.
The gas from Lupane could be utilized to produce domestic power which would help Zimbabwe to cut the power supply from neighboring countries. Also, the reserves contain the potential to earn foreign exchange through exports and improve the status of the country’s economy.
In addition to energy production, the development of these reserves can also stimulate employment and construction of new facilities in the Matabeleland North region, which can be important for the development of the region that has been lagging behind the other regions of the country.
But, the failure to obtain investment means that these benefits are still in the realm of theory at the moment.
Experts in the industry explain that the government should come up with better policies and offer better incentives for potential investors. If Zimbabwe does not find a way to develop, then it will lose a golden opportunity.
 An appeal for policy changes
According to the same authorities, the investment climate could improve to allow the development of Lupane’s gas resources.
Better-defined rules in the energy sector and more stable governmental policies could also contribute to the reduction of investors’ risk aversion and make international companies try Zimbabwe.
However, as the drive towards the use of other sources of energy gains momentum, especially around the globe, the need to act fast is even more warranted.
Some voices within the government are calling for closer cooperation with regional energy stakeholders to come up with a better plan for how to tap into the reserves.
If Zimbabwe is to increase its chances of making Lupane a strategic energy resource, it could learn from other countries that have successfully exploited its natural resources.
 A future full of promise
However, there is hope that Zimbabwe will one day identify the right partners who will assist in the development of the gas resources.
The proven and indicated reserves of 40 trillion cubic feet of gas are still a valuable resource for the country and with proper changes and investments Zimbabwe can reap in the long run from this resource.
At the moment, the emphasis is placed on the formation of a stable and attractive environment that would attract the necessary number of investors for the implementation of this project.
