We need 18 hours of power supply –– CZI
http://www.theindependent.co.zw/
Thursday, 04 August 2011 16:01
Paul Nyakazeya
LOCAL industries need at least 18 hours of uninterrupted power supply per
day in order to operate at optimum levels, according to the Confederation of
Zimbabwe Industries (CZI).
At its just ended annual general congress, the CZI resolved that its main
task was to seek a guarantee from Zesa that it ensured that power supply.
The congress was held under the theme “From Stabilisation to Growth:
Imperatives for Zimbabwe Industry.”
CZI president Joseph Kanyekanye said other resolutions agreed upon this year
were that labour laws should be reviewed so that they are more flexible and
improve the competitiveness of business, that lending rates should be 15%
and below and that genetically modified organisms (GMOs) should be embraced
in the country.
Kanyekanye said CZI would forward the resolutions to government, adding the
business body would follow up to make sure they were addressed for industry’s
revival and the growth of the economy.
Among other issues that were raised at the congress and needed attention
were anti-business laws in the country, the uncertainty surrounding the
drafting the country’s constitution, Zimbabwe Revenue Authority’s punitive
operations, the optimum use of the country’s natural resources, foreign
direct investment and the fate of the unity government.
However, of all the issues raised, power supply took precedence. Kanyekanye
said erratic power supplies had forced industry to drastically reduce
production levels at a time when the Zesa was saddled with foreign debt and
had obsolete equipment at Hwange and Kariba power stations.
“We need at least 18 hours of power supply as well as a new power station,”
he said.
He said government must allow the importation of power by private companies
and revoke unutilised licences on power projects and issue them on the basis
of timelines and a financial plan, among other considerations.
“The pre-occupation with feasibility studies should not delay power
generation projects. An independent regulator must be established and be
appointed through Parliament,” Kanyekanye said.
“The use of alternative sources of energy must be actively promoted.
Returning the old thermal power stations to local authorities should be on
the basis of increased output and improved efficiencies,” he added.
Power supply was also one of the major issues discussed at last year’s CZI
annual congress which was held under the theme. “A paradigm shift for
economic growth and development.”
The CZI says labour laws should be reviewed so that they are more flexible
and improve the competitiveness of business. It propounds that remuneration
adjustments must be linked to productivity and arbitrators should work
within this framework.
On interest rates, the CZI said banks and the National Social Security
Authority had to reduce lending rates to 15% and below.
“We urge them (banks) to continue to reduce towards LIBOR plus 5%,”
Kanyekanye said.
The CZI said there was need to embrace GMOs as there was no scientific
evidence linking them to harm. The industrial body would work with relevant
authorities to communicate the correct position on GMOs.