Stanbic Bank has approved a US$70 million loan to repair Unit 5 at Hwange Power Station, and power utility ZESA Holdings expects the unit to be producing electricity again in the third quarter of 2027.

ZESA group chief executive Cletus Nyachowe confirmed the approval but said the paperwork is not finished yet. "The bank approved the loan facility, but we await an offer letter this November," he told HararePost.

The Herald reported earlier this month that the US$70 million Stanbic facility had been secured for the Unit 5 repairs, as part of US$317 million that the state-owned Mutapa Investment Fund says it has raised for ZESA projects.

A unit that has been off for over three years

Unit 5 has an installed capacity of 220 megawatts (MW) and can realistically deliver about 165MW, HararePost reported. It has been offline since 22 July 2022, after damage to its turbine, and the repairs were held up by a lack of money.

The funding gap has been public for a while. In May 2025, Energy Minister July Moyo said about US$70 million was needed to finish the work, and that the unit could be back by 31 March 2026 if the money was found, The Zimbabwean reported. That date has now passed.

According to The Herald's report on the Mutapa fund, US$50 million had already been paid out for the Unit 5 rehabilitation before the Stanbic facility. A separate US$37 million Stanbic facility was secured for the 115km Hwange–Mukuni 400kV power line, which is meant to support regional power trade.

Why it matters: less water for Kariba next year

The timing is linked to Lake Kariba. The Zambezi River Authority (ZRA) has cut the water it will release for power at Kariba Dam from 36 billion cubic metres this year to 23 billion in 2027, shared equally between Zimbabwe Power Company and Zambia's ZESCO, Zambia Monitor and Newsday reported. ZRA cited forecasts of strong El Niño conditions and below-normal rain.

ZRA acting chief executive Peter Kapinga said usable water in the lake was projected to fall to 5.83 billion cubic metres by 31 December 2027, about nine percent of live storage, Zambia Monitor reported.

Nyachowe said bringing Unit 5 back would help cushion the drop in power from Kariba. He added that ZESA is considering drawing more water for generation in the first half of 2027, expecting Hwange's extra output later in the year. "The additional generation from Hwange would help compensate for reduced output at Kariba," he told HararePost.

For homes and businesses, that plan carries a risk: if Kariba's water is used faster early in the year, the country will rely on Unit 5 arriving on time.

What we don't know yet

When the Stanbic offer letter will be signed and the money released.

The interest rate, repayment terms or any government guarantee on the loan.

Whether the third-quarter 2027 date allows for delays in delivery of parts and testing.

We will update this story when ZESA or Stanbic gives more detail.

Sources: HararePost, 29 Oct 2026: https://hararepost.com/2026/10/29/zesa-secures-us70m-loan-to-revive-hwange-unit-5/ · The Herald, Oct 2026: https://www.heraldonline.co.zw/mutapa-investment-fund-mif-mobilises-us317m-for-zesa/ · STACKWIRE, 11 Oct 2026: https://stackwire.co.zw/articles/mutapa-investment-fund-mobilises-317-million-zesa-projects · Zambia Monitor, 15 Oct 2026: https://www.zambiamonitor.com/fears-over-hydropower-generation-in-2027-as-river-authority-cuts-kariba-water-allocation-to-23bn-cubic-meters/ · News.co.zw (Newsday), Oct 2026: https://news.co.zw/story/zra-cuts-kariba-water-allocation-for-2027-over-el-nino-fears-c44fa61d · The Zimbabwean, May 2025: https://www.thezimbabwean.co/2025/05/hwange-unit-5-restoration-project-requires-us70-million-energy-minister/

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