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Zesa, power producer embroiled in currency dispute

Published

3 years ago

August 24, 2021

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.

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.

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.

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.

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.

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.

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

National

Bulawayo businessman takes own life

Published

2 days ago

January 20, 2025

VicFallsLive

Picture: ZimLive

BY WANDILE TSHUMA

Tragedy struck in Bulawayo’s Cowdray Park on Saturday, when a 36-year-old businessman John Madzikatire took his own life by shooting himself.

According to a police statement, the incident occurred around 9:30 pm on an unnamed dust road, where a motorist stumbled upon Madzikatire’s lifeless body lying next to his Mercedes Benz vehicle.

The vehicle was still idling with its lights on and the driver’s door wide open.

Madzikatire was found in a pool of blood, bleeding from a gunshot wound to the head, with no signs of life.

A pistol was discovered under his right knee, and it’s suspected that he shot himself in the head from the left side, with the bullet exiting from the right side.

A search of the vehicle revealed an army green bag containing a substantial amount of cash: $5,122 USD, 20,719 South African Rand, and $24 Zimbabwean dollars. The body was taken to United Bulawayo Hospitals for a post-mortem examination.

The Zimbabwe Republic Police is investigating the incident and encourages the public to seek help when facing challenges. “We urge people to engage with others and seek counseling from community leaders and professional counselors rather than resorting to taking their own lives,” said Inspector Nomalanga Msebele, Press and Public Relations Officer for Bulawayo Province.

National

Vic Falls road crisis: Motorists slam “undrivable” highway

Published

2 days ago

January 20, 2025

VicFallsLive

BY NOKUTHABA DLAMINI

The once-thriving Victoria Falls-Bulawayo highway has become a nightmare for motorists, with many labeling it “undrivable” due to its deplorable state.

As we drove through the Hwange area, close to Dete, Lubimbi Turn and Lupane, we witnessed firsthand the treacherous conditions that have left drivers frustrated and fed up.

The road is riddled with potholes, gullies, and mud-filled craters, forcing many to abandon the main road and opt for a dusty, makeshift alternative.

In some areas close to Lupane, villagers have taken it upon themselves to fix the road using the ordinary soils. This is usually done by the children and women.

“I’ve been driving for over 20 years, but this road is the worst I’ve ever seen,” said Thomas Moyo, a truck driver who frequently travels the route. “It’s like they’ve abandoned us. We’re forced to create our own paths, but even those are becoming increasingly difficult to navigate.”

Another motorist, Sarah Ndlovu, expressed her disappointment and concern for safety. “It’s not just the damage to our vehicles; it’s the risk of accidents and injuries. I’ve seen cars stuck in the potholes , and it’s only a matter of time before someone gets seriously hurt.”

The poor state of the road is also affecting travel times, with some motorists reporting journeys that take up to 10 hours to cover a stretch of 400 kilometers.

“It’s unacceptable,” said James Dube, a tourist operator. “This road leads to one of the world’s most iconic tourist attractions, and yet it’s in shambles. We need urgent attention to fix this road and restore our country’s reputation.”

However, in a recent statement, the government announced plans to prioritize the rehabilitation of the Victoria Falls-Bulawayo highway this year.

According to the Ministry of Transport and Infrastructural Development, a significant allocation of funds has been set aside for the project, which is expected to commence in the coming months.

While this news has brought some relief to motorists, many remain skeptical, citing previous unfulfilled promises. “We’ve heard it all before,” said Moyo. “We’ll believe it when we see it.”

As the situation continues to deteriorate, motorists are calling on authorities to take immediate action to repair and maintain the highway.

With the peak tourist season approaching, it remains to be seen whether the government will follow through on its promises and restore the Victoria Falls-Bulawayo highway to its former glory.

Hwange

Vic Falls man up for raping 13-year-old girl at knifepoint

Published

6 days ago

January 16, 2025

VicFallsLive

BY LWANDILE TSHUMA

A 43-year-old man from Chinotimba, Victoria Falls, has been remanded in custody for allegedly raping a 13-year-old girl at knifepoint.

The court heard that on October 10, 2024, the accused entered the complainant’s bedroom while she was alone, armed with a knife, and forcefully undressed her before committing the crime. He then threatened to kill her if she revealed the incident to anyone.

The matter only came to light on January 12, when the young girl confided in her aunt about her ordeal.

The accused appeared before the court and was remanded in custody until January 28.