by Christopher Makaza
Zimbabwe has finally settled its US$33 million debt to South Africa`s Eskom, one of the country’s major power suppliers while payments to Mozambique`s Hidroelectrica de Cahora Bassa (HCB) continue, a Cabinet minister has said.
Posting on his Twitter handle, Energy and Power Development Minister Fortune Chasi said the development could significantly ease load shedding as the Zimbabwe Electricity Supply Authority (Zesa) could now negotiate for additional supplies if available.
“Hard to believe but Eskom has, in fact now been paid off. Eskom was paid the last US$890,000.00 for imports during this week. This means Zesa can now negotiate for additional supplies if available. Attention now turns to HCB (Mozambique),” he posted.
The settlement of US$33 million owed to Eskom could see Zimbabwe’s power imports increase from 50 megawatts 350 megawatts. ZESA also owes HCB US$37 million for power imports. Recently, President Emmerson Mnangagwa met his Mozambican counterpart Filipe Nyusi to negotiate for a debt settlement plan and increased power imports.
Zimbabwe imports at least 50MW daily from Eskom and 100MW from HCB to meet its supply gap, but can access up to 450MW from the two regional power utilities if it successfully pays off its arrears.
Before the settlement of the Eskom debt, Zimbabwe’s electricity arrear stood at US$80 million. As a result of outstanding debts, Eskom and HCB reduced exports to Zimbabwe to 50MW and 100MW respectively.
Zimbabwe is currently generating less than 820 MW from three power stations against a daily peak demand of 1 600MW in winter and 1 400MW in summer. Harare and Bulawayo thermal power stations are not generating electricity at the moment.
Economic analysts believe that as the country progressively reduces its debt to regional power suppliers, its creditworthiness, which makes it able to purchase additional electricity, is also improving.
Minister Chasi urged Zimbabweans to religiously settle their bills with ZESA.
“We are an honest people. We must pay our debts and this is what has just happened. Those who owe Zesa must also pay regardless of status,” said Minister Chasi.
Meanwhile, Minister Chasi has assured the nation that Government would do all it can to make sure that winter wheat growing clusters have enough power supplies to ensure successful local wheat crop.
Zimbabwe has massive electricity generation potential to ensure self-sufficiency and that potential needs private players to come on board for full realisation. This may take the form of Public Private Partnerships (PPPs) joint ventures or various other models with the power utility.
