Zimbabwe Forcing Industries To Rely On Erratic ZESA Power Supplies
28 July 2011
Ruth Labode, president of the Matabeleland Confederation of Industries said
private companies will rather import expensive power than rely on the
Zimbabwe Electricity Supply Authority which is failing to cope with demand.
Gibbs Dube | Washington
The Confederation of Zimbabwe Industries (CZI) says government is blocking
private entities from importing electricity from regional utilities despite
serious power outages in Zimbabwe.
According to the Herald newspaper, CZI president Joseph Kanyekanye told
delegates at the on-going CZI annual conference in Victoria Falls that if
unresolved, power outages will soon cripple industries.
He said though some private companies were early this year issued licenses
to generate power, they have not yet started operating. at least two private
firms are believed to be generating power for boosting their operations.
Ruth Labode, president of the Matabeleland Confederation of Industries said
private companies will rather import expensive power than rely on the
Zimbabwe Electricity Supply Authority which is failing to cope with demand.
Matabeleland regional Chamber of Commerce president Isaac Mabuka said
industries will find it difficult to import power from regional utilities
but he commends Finance Minister Tendai Biti for crafting a package for
distressed industries.
Economist James Wade said most industries are failing to meet production
targets due to the high cost of loans and power outages.
For a close look at issues affecting industries, Studio 7 turned to
economists John Robertson and Prosper Chitambara of the Labour and Economic
Development Research Institute of Zimbabwe. Robertson said Biti in his
mid-term budget review statement did not say much that will help resuscitate
struggling industries in the country.
In his budget review statement, Biti said a recent Zimbabwe National
Statistics Agency (ZIMSTAT) survey reveals that average capacity utilization
during the first half of 2011 remains within the 40 to 50 percent range,
reflecting high levels of idle capacity.
However, companies in the foodstuffs, drinks, beverages and tobacco,
non-metallic minerals, mining and chemicals sectors recorded slight
improvements in capacity utilization of over 50 percent as a result of
marginal investments in those sectors.
Employment numbers in the textile sector have slumped from 7,500 in 2010 to
3,000 in 2011 largely due to an influx of cheap imports, working capital
constraints and obsolete equipment. Capacity utilization has fallen further
to 8 percent from the 2010 levels of 30 percent, according to ZIMSTAT.
Tourist arrivals and bed occupancy growth rates of 14.3 percent were
recorded in the tourism sector in the first half of 2011 compared to the
same period last year.