The Herald (Harare)
Published by the government of Zimbabwe

Zimbabwe: Lack of Investment Capital Blamed for Power Blackouts

Ashwert Kugara

21 February 2008


Harare — LOW electricity tariffs are not the major cause of current power blackouts but lack of investment capital needed to replenish existing infrastructure, and building new ones have been a thorn in the flesh for Zimbabwe's power sector.

Minister of Energy Development Mr Mike Nyambuya told stakeholders at a breakfast meeting hosted by the Zimbabwe National Chamber of Commerce in Harare yesterday that the World Bank, previously the major investor in the energy sector, had long withdrew its financial support to the country.

He said Hwange Colliery investors had also failed to fulfill their recapitalisation obligations for the firm to produce enough coal needed to feed into the country's thermal power stations.

Mr Nyambuya said the current situation has further been affected by the ever-growing demand for electricity that outstripped supply, which stood at three percent for the past years.

The rural electrification programme and lack of foreign currency to service underground electricity cables, he cited, were also contributory challenges bedeviling the sector.

Mr Nyambuya said that these challenges were predicted since 1995 but no action was taken leading to the current electricity crisis.

The power blackouts are thus expected to continue.

"Most of our machinery for energy generation have a lifecycle, and have not been replaced for the past ten years," said Minister Nyambuya.

"Despite these challenges, the Government has churned out a number of short and medium-term measures aimed at resuscitating energy sources around the country.

"We have also resorted to the use of solar energy mostly for geysers, which is cost effective and reliable."

Mr Nyambuya added that geysers were consuming about 40 percent of total electricity generated.

There was need for Government-private sector partnership in order to salvage energy crisis.

Zesa has said that it needs at least US$2 billion to undertake serious investment in power generating projects until 2010.

ZNCC president Mrs Marah Hativagone said that the Government had to take robust and drastic measures through implementation in order to alleviate power shortages.

"The private-public sectors should complement Government efforts," she said.

The Government is also trying to expand the Kariba South power station and expects the two units to produce close to 300 megawatts.

Last year, the country lost close to $35 billion to thefts and vandalism, a situation that has adversely affected service delivery.

The southern African region is currently struggling with sharp electricity shortages mainly as a result of high demand, and low investment.

Zimbabwe, which imports 35 percent of its power needs from neighboring countries, is faced with a serious power shortage.

The country is generating around 1 000MW against a demand of 1 500MW a day, with 200MW coming from Mozambique.

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