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Zesa, power producer embroiled in currency dispute

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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.

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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.

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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.

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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.

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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.

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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.

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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

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National

Bulawayo mourns Nkulumane MP and poet Desire “Moyoxide” Moyo

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BY NOKUTHABA DLAMINI 

The City of Bulawayo has expressed deep sorrow following the death of Nkulumane MP and acclaimed poet Desire “Moyoxide” Moyo, who died in a car accident early Friday morning near Shangani.

In a condolence message issued by Town Clerk Christopher Dube on behalf of the Mayor, Senator David Coltart, councillors, and residents, the city described Moyo as “an iconic leader, poet par excellence, and creative who strove to champion the arts in Bulawayo and beyond.”

Moyo, who was affectionately known as Moyoxide, was praised for his commitment to the city’s artistic and civic development. The statement highlighted his impact through his multiple roles — as a Member of Parliament for Ngulumane, a community leader, and a poet who spoke out against injustices while advocating for progress.

“He positively impacted the city through his roles as a leader and poet who challenged all for the development of Bulawayo and the country,” read part of the statement.

The City of Bulawayo also extended its condolences to the Moyo family, the Bulawayo community, and the nation at large.

“May his soul rest in eternal peace,” the statement added.

The city further wished a speedy recovery to other CCC legislators who were injured in the same accident — Honourables Madalaboy Ndebele, Senator Rittah Ndlovu, Sethulo Ndebele, and Libion Sibanda.

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National

CCC legislators in road accident, Nkulumane MP dies

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BY STAFF REPORTER

One Citizens Coalition for Change (CCC) legislator has died while four others were seriously injured in a road accident that occurred early Friday morning near Shangani along Bulawayo-Harare highway.

CCC spokesperson Promise Mkhwananzi confirmed the accident, saying it happened between 2 a.m. and 3 a.m. when the vehicle carrying the members collided with an elephant.

“The vehicle hit an elephant along the Shangani area, and unfortunately Honourable Desire Moyo, the Member of Parliament for Ngulumane, died on the scene,” Nkwananzi said.

He added that the other occupants — Honourable Madalaboy Ndebele, Senator Rittah Ndlovu, Honourable Sethulo Ndebele, and Libion Sibanda — sustained serious injuries and were rushed to a hospital in Bulawayo.

Nkwananzi said he was deeply shocked by Moyo’s death, as he had met him just yesterday in Harare.

“I had seen Moyo yesterday and we spent about an hour chatting outside Jamieson Hotel about the party and our future plans for national development,” he said. “I’m gutted by his passing. It’s a huge loss for the party.”

He conveyed his condolences to the Moyo family and wished a speedy recovery and strength to the families of the other CCC members who remain in critical condition.

He said further details, including the name of the hospital where the injured are receiving treatment, would be released once confirmed.

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In the community

MPs raise alarm over illegal gold mining threatening Inyathi hospital

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BY NOKUTHABA DLAMINI 

The Parliamentary Portfolio Committee on Health and Child Care has raised serious concern over illegal gold mining activities taking place directly beneath Inyathi District Hospital in Bubi District, Matabeleland North — warning that the facility’s infrastructure could collapse if the practice continues unchecked.

The revelation came during the committee’s ongoing verification visits to rural health centres across Zimbabwe, aimed at assessing the state of medical infrastructure, equipment, and essential drug availability. The visits, led by Hon. Daniel Molokele, are being conducted on behalf of the committee chairperson, Hon. Dr. Thokozani Khupe.

Speaking to VicFallsLive, Molokele said the team was shocked to discover that artisanal miners (amakorokoza) had extended their illegal mining tunnels under the hospital grounds.

“One of the things that we found at Inyathi District Hospital is that amakorokoza are now doing their gold mining right under the hospital,” said Molokele. “They used to do it outside, but now they have gone beneath the facility. There is a real risk that the infrastructure might collapse because of the underground pressure. This is lawlessness that the government urgently needs to address.”

Molokele added that the situation reflects broader governance and enforcement challenges in mining communities, where unregulated artisanal mining continues to threaten both public safety and environmental health.

“Most of the cases that patients come with are physical wounds — largely injuries from violent clashes among the amakorokoza,” he said. “There’s a lot of violence happening there, and it is putting a heavy burden on an already under-resourced hospital.”

The committee, which began its tour on Monday in Inyathi before proceeding to Avoca in Insiza District (Matabeleland South), Gundura in Masvingo, and Mutiusinazita in Buhera (Manicaland), is compiling findings that will inform parliamentary recommendations.

“We will produce a report that will have clear recommendations,” Molokele said. “The National Assembly will debate it, and the Minister of Health will use it to engage the Minister of Finance, especially in the upcoming budget process. We are hoping for a renewed focus on rural healthcare centres, which have been neglected and underfunded for many years.”

Molokele said the verification exercise — though limited by time and financial constraints — seeks to highlight conditions in at least one rural health facility per province.

The committee’s findings come at a time when Zimbabwe’s rural health infrastructure is under severe strain, with many facilities struggling with drug shortages, outdated equipment, and deteriorating buildings. The situation in Inyathi now adds a new dimension of danger — where illegal mining is not only threatening livelihoods but also public infrastructure meant to save lives.

 

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