Connect with us

Slider

Zesa, power producer embroiled in currency dispute

Published

on

A currency dispute between an independent power producer and power utility Zesa shows how regulatory hurdles continue to dim prospects for private energy investment in Zimbabwe.

Zesa is awaiting the outcome of international arbitration in a currency dispute with one of the country’s first private power producers, a case that’s holding up other investments.

Advertisement

Nyangani Renewable Energy, which operates solar and hydropower plants in Zimbabwe and Malawi, took the Zimbabwe Electricity Transmission Distribution Company (ZETDC) to the Johannesburg branch of the International Chamber of Commerce to rule on the disagreement over a currency conversion agreement.

“We eagerly await the outcome of the arbitration,” Ian McKersie, the managing director of Harare-based Nyangani said. “If it is favourable, it will allow us to resume the very conducive working relationships we have.”

The dispute was heard on June 14. Nyangani says it is owed US$8.6 million for power delivered from its 15MW Pungwe B run-of-river hydropower plant. It wants to be paid in US dollars but ZETDC, a unit of Zesa, is seeking to pay in Zimbabwe dollars.

Advertisement

Zesa declined to comment.

Nyangani’s 10MW Riverside Solar power station was the first independent producer to feed into Zesa when the first 2.5MW came on stream in January 2018.

The company plans to expand, but “the rollout of the next phase has been stalled for three years pending a resolution of the IPP currency of payment issue”, the company said in July.

Advertisement

The company also said last month that “despite exceptional initial progress, construction on the Tsanga A and C Hydros has been hampered and halted due to IPP currency payment issues”.

Nyangani has built eight power plants in Zimbabwe since 2009 with a total generation capacity of 32MW.

Zimbabweans are subjected to regular power cuts because of the inability of Zesa to meet demand, and the state-owned company is struggling to pay for privately produced power because of a shortage of foreign currency.

Advertisement

Other projects are stalled as producers await the outcome of the case.

Private electricity has the potential to transform the industry in Zimbabwe, and help repair an economy that’s yet to recover from a collapse two decades ago.

While independent power producers supply only 135MW to the grid, licenses for facilities with a combined capacity of 6 858MW have been issued, according to a parliamentary report.

Advertisement

That is more than enough to meet demand for electricity, but many of the projects have not taken off.

In May last year, Zimbabwe tendered for 500MW of solar power, hoping to attract private investment into renewables.

Private companies, such as leading mining companies, are advancing rapidly in setting up solar plants for their own consumption.

Advertisement

But growth in investment by independent producers remains slow.

This is largely due to uncertainty around the currency, power offtake agreements with Zesa and scarcity of foreign credit for large scale power projects. –Bloomberg/newZwire

Advertisement
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

In the community

Victoria Falls launches bill-payment incentive program to drive municipal growth

Published

on

BY NOKUTHABA DLAMINI

The City of Victoria Falls has launched a promotional campaign offering prizes ranging from solar power systems to helicopter rides to encourage residents to settle their utility bills and rates.

The initiative, titled the “Pay and Stand a Chance to Win Promotion,” began on April 2, 2026, and is scheduled to run in three-month cycles through the end of the year. According to a notice issued by Town Clerk Ronnie Dube, the program aims to have residents work together to contribute to the continued growth and improvement of the city.

To qualify for the draws, domestic customers in high-density suburbs must pay at least 30% of their outstanding balance or a minimum of US$100. Residents in medium and low-density suburbs are required to pay at least 30% of their debt or a minimum of US$200.

The city is offering a tiered prize structure to incentivize different levels of payment. Four 3KVA solar systems are reserved as grand prizes for residents who achieve a zero-balance account. Other prizes in the pool include four refrigerators, four gas stoves, and 100 solar lights.

Leveraging its status as a World Heritage Site, the city is also offering four “Flight of Angels” helicopter rides, four boat cruise tickets, and four complimentary dinner tickets for two. Consolation prizes such as city-branded T-shirts will also be available.

The first draw is scheduled for the second week of July, followed by a second draw in October. The final and grand draw will take place in the second week of January 2027. Residents can enter by making payments at Council Pay Points and dropping their receipts into designated entry boxes.

Continue Reading

National

30 killed in Easter road crashes as pedestrians bear the brunt

Published

on

BY WANDILE TSHUMA 

The Zimbabwe Republic Police has reported a worrying rise in road fatalities during the 2026 Easter holiday, despite a decline in the total number of accidents.

According to the police, 30 people were killed in road traffic accidents during the holiday period, up from 24 deaths recorded in 2025. However, the total number of accidents dropped from 384 in 2025 to 337 in 2026, while injuries also decreased significantly from 178 to 104. 

Police said 22 of the recorded accidents were fatal, compared to 21 during the same period last year. 

Pedestrians most affected

Pedestrians accounted for the majority of fatalities, making up 63% of the deaths (19 people). Passengers were the second most affected group with seven deaths (23%), followed by drivers with three (10%), while one rider (3%) was killed. 

Speeding, overtaking blamed

Authorities identified speeding as the leading cause of accidents during the period, with many drivers losing control of their vehicles. Unsafe overtaking was also cited as a major contributor to head-on collisions. 

Deadly incidents recorded

One of the most tragic incidents occurred on 2 April 2026, when six family members died after a head-on collision between a Toyota Corolla and a truck along the Harare–Masvingo Road. 

In another traffic accident , seven people were killed and four injured on 3 April 2026 at the 51km peg along the Bulawayo–Beitbridge Road. A truck rammed into three vehicles — a Nissan March, Toyota Probox and Toyota Hiace — before striking pedestrians who had gathered at the scene. 

Police warning

The police have urged motorists to exercise caution, obey traffic laws and avoid speeding, especially during peak travel periods. Drivers involved in accidents are also being reminded to stop, render assistance and report incidents.

 

Continue Reading

National

Econet InfraCo targets ultra-luxury market with Vic Falls resort

Published

on

BY STAFF REPORTER 

Econet InfraCo has unveiled plans for a multimillion-dollar luxury resort in Victoria Falls, marking a strategic push by the billion-dollar infrastructure platform into high-end tourism.

The development, branded Vic Falls Lifestyle, will feature 40 luxury residential villas supported by premium amenities, including restaurants, wellness centres and sports facilities.

Chief executive Fayaz King described the project as a landmark for Zimbabwe’s luxury tourism segment.
“These will be among the most exclusive residential properties ever developed in Zimbabwe, designed to meet top-tier international hospitality standards comparable to presidential suites in leading global hotels,” he said.

The project aims to reposition Victoria Falls as a destination for affluent global travellers seeking privacy, exclusivity and fully integrated services.
Recently listed on the Victoria Falls Stock Exchange with a valuation of about US$1 billion, Econet InfraCo said the resort will include a 24-hour, 10-bed private hospital offering emergency and dental services—an amenity tailored to high-net-worth clientele.
Security and privacy will be central to the offering, with the gated development providing round-the-clock protection for residents and guests.

Under the investment model, buyers will own individual villas but will be required to place them in a rental pool for up to 11 months a year, balancing personal use with income generation.

“Victoria Falls needs developments of this calibre to attract visitors who not only spend, but invest,” King said.

Econet founder and group chairman Strive Masiyiwa played an advisory role in shaping the concept and is expected to be among the property owners.
The company said the project has already drawn interest from local and diaspora investors, as well as international buyers.

Land has been secured, planning is at an advanced stage, and construction is scheduled to begin before year-end.

The Victoria Falls resort is Econet InfraCo’s second major project. Its flagship, Econet Tech City, is a planned industrial and technology hub near Robert Gabriel Mugabe International Airport in Harare, expected to host around 300 businesses across more than 800 hectares.

Continue Reading

Trending

Copyright © 2022 VicFallsLive. All rights reserved, powered by Advantage