Dumisani Muleyaand Khulu Phasiwe
10 May 2005
Johannesburg — THE Zimbabwe Electricity Supply Authority (Zesa) says it has reduced its debt to SA's power utility, Eskom, from US$66m to US$2,4m.
Zesa corporate affairs manager Obert Nyatanga said that the power utility had been able to reduce the debt, which had earlier resulted in Zimbabwe being classified an "interruptible customer" by Eskom, because of financial support from the central bank.
Zimbabwe imports 35% of its power needs from Eskom, Mozambique's Hydroelectrica Cahora Bassa and the Democratic Republic of Congo's Snel.
The three utilities in the past cut supplies to Zimbabwe because of nonpayment.
Nyatanga said Zesa had already cleared its debt with HCB, and Snel. Zimbabwe, mired in a deep political and economic crisis, was currently paying for its power imports in advance due to its poor credit rating.
Eskom spokesman Fani Zulu confirmed yesterday that Zesa had been servicing its debt, and said: "We anticipate that they will liquidate the debt in a month or two."
The country needs $17m every month for electricity imports - but it has been unable to raise the money due an acute foreign-currency shortage.
As a result of the forex crisis, there are also shortages of fuel, food, and drugs.
There is also a scarcity of basic commodities like maize meal, bread, milk, cooking oil and soft drinks.
The shortages, caused largely by diminished production and damaging price controls, resurfaced after the disputed parliamentary election in March, won by President Robert Mugabe's ruling Zanu (PF).
Last week 28 supermarkets in Harare were fined Z$31 million by police for allegedly hoarding basic commodities.
More than 400 vendors were arrested on allegations of overpricing goods in the black market.
As the foreign currency crisis deepens, the government has resorted to raiding hotels to get hard currency.
A government task force has of late been going around searching hotels for foreign currency.
Zimbabwe is failing to repay a mere $306m International Monetary Fund debt which has resulted in its voting rights being suspended. In February, Harare was given a second six-month grace period to repay or face expulsion.
Zimbabwe's foreign debt is more than US$5bn, while the domestic debt is topping Z$10-trillion.
The foreign-currency crisis is set to worsen as exporters face worsening viability problems due to the widening gap between the official and parallel market exchange rates.
The official exchange rate is US$1:Z$6 500, while the black market rate is US$1: Z$21 500.
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