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     Zesa entities to merge to enhance power supply security

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    Harare, (New Ziana) – Some entities under ZESA Holdings (Pvt) Ltd are to be merged as part of a cocktail of measures to enhance the country’s power supply security, Information, Publicity and Broadcasting Services Minister, Dr Jenfan Muswere has said.

    Zimbabwe is reeling from a 400MW daily power deficit in local generation, with the country importing between 200MW to 500MW from its regional neighbours, Mozambique, Zambia and South Africa. Briefing the media post this week’s Cabinet meeting in Harare, Dr Muswere said cabinet had considered a report on measures to enhance the country’s power supply security presented by the Minister of Finance and Investment Promotion, Professor Mthuli Ncube who chairs the inter-ministerial committee appointed to analyse the power issues.

    Dr Muswere said Cabinet heard that the Zimbabwe Electricity Supply Authority (ZESA) has structural challenges being addressed by its parent organisation, the Mutapa Investment Fund (MIF) ZESA is one of 23 State Owned Enterprises that have been placed under the MIF, formerly known as the Sovereign Wealth Fund of Zimbabwe, created under the Sovereign Wealth Fund Act.

    MIF is a state-owned investment fund established from the balance of payment surpluses, official foreign currency operations, the proceeds of privatisation, government transfer payments, fiscal surpluses and resource earnings.

    Dr Muswere said the process will involve the bundling or merging of some entities under ZESA Holdings (Pvt) Ltd, as recommended by an independent consultant who was commissioned to undertake the task. This is expected to result in a more simplified and efficient governance and management structure.

    “In order to attain the Vision 2030 aspiration of an Upper-Middle Income Society, there is need to enhance the supply of electricity to cater for the continuous growth of the economy, especially in the productive sectors. Presently, there is a deficit of up to 400 megawatts in local generation capacity.

    The country currently imports 200 to 500 megawatts to cover the shortfall,” he said. “Despite now charging a cost-reflective tariff, the Zimbabwe Electricity Supply Authority (ZESA), still faces challenges which negatively impact its ability to deliver on its mandate of providing electricity to the nation.”

    It was on this basis that Cabinet approved the cocktail of measures to enhance the country’s power security. He said the supply-side interventions include rehabilitation of Hwange Units 1 to 6 under a Build, Operate and Transfer arrangement which is set to commence this year.

    The MIF is also putting in place measures to cater for the foreign currency requirements of Independent Power Producers while ZESA has been directed to promote the net metering facility and streamline the pertinent procedures and requirements in order to increase uptake of net metering from solar-generated electricity.

    “The loss of electricity during transmission is being attended to through the establishment of a joint venture between ZENT and QLV for the manufacture of cables, and in dealing with theft and corruption,” he said.

    “To enhance revenue collection, ZESA has been directed to speed up installation of pre-paid meters in order to effectively deal with debtors, while the Mutapa Investment Fund is establishing a foreign exchange discount facility against the ZESA debtors’ book to meet the current creditors.

    Investment in research and development involving ZESA, ZENT and institutions of higher learning for the local manufacture of various parts of power generation and transmission equipment is being promoted.”

    He said implementation of the various measures are expected to go a long way in enhancing ZESA’s capacity to deliver on its mandate of providing electricity to the nation.

    New Ziana

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