Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

***The views expressed in the articles published on this website DO NOT necessarily express the views of the Commercial Farmers' Union.***

Darkness looms over Zimbabwe

Darkness looms for Zimbabwe

http://www.businesslive.co.za

05 March, 2011 19:11

Regional power utilities supplying power to Zimbabwe might pull the plug if 
its government fails to settle debts owed by the country’s power utility.

The Zimbabwe Electricity Supply Authority (Zesa) evidently owes regional 
suppliers more than US$100-million in accumulated debt.

Yet despite facing electricity supply problems, Zimbabwe is exporting power 
to Namibia at below cost.

Zimbabwe generates about 1400MW of a required 2000MW, and imports about 
300MW from Zambia and Mozambique.

However, Energy and Power Development Minister Elton Mangoma says Zesa 
exports about 150MW to Namibia.

Mangoma said Zambia and Mozambique were “willing to export more power if we 
pay for the current imports and something towards the accumulated debt of 
nearly US $100-million.”

He said Zimbabwe expected to receive another 50MW-100MW from the Democratic 
Republic of Congo, starting this month.

Power-sector sources said this week it was highly unlikely that Zimbabwe 
would continue to get power supply from the regional power utilities and 
beyond if it did not settle its debts.

“These regional power utilities have had enough of excuses. Each time they 
chase for payments of outstanding debts, they are told things are being 
worked out. It is only a matter of time before they get fed-up and stop 
supplying us with power,” said a source.

Consumers and industrial players are hit by power cuts as the power utility 
struggles to provide electricity to all parts of the country.

The government is not likely to provide funds to clear the debts soon.

Finance Minister Tendai Biti has indicated the country faces challenges that 
will make the settlement of debts difficult. The government is struggling to 
pay decent public service salaries. Promises of salary increases are 
unfulfilled.

There is a dogfight over whether the money from the sale of diamonds should 
go towards public service salaries or not, while other essential services 
await funding from the government.

Mangoma bemoaned Zesa’s US$40-million deal with NamPower to export about 
150MW to Namibia. The tariff agreed is below Zimbabwe’s cost of generating 
the power.

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