Zimbabwe Informational Site

Zimbabwe might experience massive load shedding starting next week if Zesa Holdings fails to settle an outstanding power import bill of $43 million owed to Eskom of South Africa and Hydro Cahora Bassa (HCB) of Mozambique.

Eskom supplies Zimbabwe with 300 megawatts, while HCB chips in with 50 megawatts. The South African power company has threatened to switch off Zimbabwe if Zesa fails to pay the outstanding amount in eight days. Zimbabwe consumes about 1 400 megawatts daily against a generating capacity of around 980 megawatts.

Zesa owes the two regional power giants more than $100 million, but the $43 million is emanating from the payment plan the power company has failed to honour due to foreign currency shortages.

Earlier this year Zesa made payment plans with regional power utilities and should have paid $89 million between January and April. The authority managed to pay off $46 million, leaving a balance of $43 million. The payment plan included 2016 arrears.

The creditors gave Zesa up to May 31 to clear the arrears in the payment plan, but with only eight days to go, the power utility has not paid anything.

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