Deputy Minister Paddy Zhanda
Africa Moyo and Leonard Ncube in Vic Falls
COMMERCIAL farmers have accumulated up to $180 million in unpaid electricity bills since the 2013 debt reprieve, thereby inducing a strain on the power utility’s operations.
Zimbabwe Electricity Transmission and Distribution (ZETDC) managing director, Engineer Julian Chinembiri, told delegates at the ongoing Zimbabwe National Chamber of Commerce (ZNCC) annual congress here that continued supply was threatened by failure to settle bills.
“We have seen that the agricultural sector, actually they are very reluctant to pay their bills. For us to be able to say ‘we are ready to have a steady power supply’, we need our clients to pay.
“As we speak, the (agriculture) sector actually owes us $180 million dollars and mind you, it accumulated from 2013 when there was that debt relief and that is 10 percent of our debtors’ book,” said Eng Chinembiri.
Zesa is owed about $1,1 billion by consumers in unpaid electricity bills. Asked what Zesa was doing to recover the money, Eng Chinembiri said when farmers were engaged, they were not keen to pay the bills saying they are “waiting for another debt relief in 2018”.
Towards the 2013 harmonised polls, Government cancelled all electricity and water bills that citizens accrued with service providers, citing the challenging economic environment people are contending with.
But Eng Chinembiri pleaded with Government to engage farmers so that they settle their bills and capacitate Zesa to pay for power imports and invest in further local generation.
“We have a lot of dams now (with water and) we need electricity to irrigate. Let us encourage the farmers so that we also guarantee power supply but for this season, we can also guarantee that power supply is there.
“So ourselves (Zesa) to be able to guarantee power supply, we need funding (and) I think we also need to make sure that we fund electricity from the word go,” he said.
Eng Chinembiri added that electricity was a key input in farming just like seed and fertiliser since many processes at farms require electricity, hence the need to pay on time to ensure uninterrupted power supplies. Since 2015, the country has been enjoying a steady supply of electricity owing to increased generation and imports.
More power is expected in December when the first unit churning out 150MW at Kariba Power Station is expected to start contributing power to the grid.
However, Eng Chinembiri warned that the threat of load shedding remains as regional power utilities – Eskom of South Africa and Hidroelectrica de Cahora Bassa (HCB) – which export 300MW and 50MW respectively to Harare, require payment upfront.
Recently, the Reserve Bank of Zimbabwe had to intervene to save a dire situation when Eskom was threatening to pull the plug on Zimbabwe over arrears of $43 million.
Eng Chinembiri warned that the “threats are coming” if consumers do not pay, adding that policymakers should allow Zesa to install prepaid meters on the farms to ensure compliance.
Previously, Zesa had wanted to install prepaid meters on the farms and/ or to have stop order facilities whereby they would get their money upfront when farmers are paid for produce, but Government vetoed the proposal, saying it would affect farmers.
Eng Chinembiri also urged power users to protect power infrastructure around them, especially cables and transformers from vandalism and theft as that will have an impact on electricity supply. Some parts of the country do not have power owing to vandalism of infrastructure.
Contributing during discussions, Arda board chairman, Mr Basil Nyabadza, suggested that all provinces should develop agro-processing centres, which will create more job opportunities as well as labour and skills retention.
“Let’s focus on development based on provinces. We can’t continue having a situation whereby a tourism zone like Victoria Falls imports bread, eggs and milk from other provinces when there could be processors locally.
“We need to have fundamentals such as bakeries, milling, abattoirs and dairy processors in the provinces and people can import to top up only. We have already started in Maphisa in Matabeleland South where we are constructing a milling facility,” said Mr Nyabadza.
He said industrialising rural provinces is possible, especially when the country managed to record successes in Command Agriculture within six months. Deputy Minister of Agriculture, Mechanisation and Irrigation Development Responsible for Livestock, Paddy Zhanda, who was part of the panellists, concurred.
“Each province must start thinking about exporting to other provinces. Matabeleland North may not be growing maize but can have a milling facility to retain labour and skills,” he said.
The meeting ends today under the theme: “consolidating the new normal economy through policy reforms.”