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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

Hwange

Hwange Local Board impounds cattle: Owners urged to claim animals

Published

4 days ago

December 18, 2024

VicFallsLive

BY WANDILE TSHUMA

The Hwange Local Board is urging livestock farmers to come forward and claim their cattle that were impounded by Council Police last week.

According to a notice issued by Acting Town Secretary Paul Mabhureni, the 10 animals have been unclaimed for over a week and are currently being held at the impound yard.

Farmers with missing cattle are advised to visit the Hwange Local Board offices to identify and claim their animals.

A daily fee will be charged for each impounded animal, and if the animals remain unclaimed after a month, the Council will auction them off .

The Hwange Local Board is also warning livestock owners to take responsibility for managing and controlling the movement of their animals to prevent them from encroaching into residential areas.

Council Police have increased patrols to reduce the presence of stray animals in these areas.

Residents are encouraged to report any stray livestock to the Council immediately.

Hwange

Victoria Falls City Council meeting aborted due to lack of quorum

Published

5 days ago

December 17, 2024

VicFallsLive

BY NOKUTHABA DLAMINI

A full council meeting scheduled to take place at the Victoria Falls City Council today was aborted due to a lack of quorum.

The meeting, which was initially scheduled for Thursday, was fast forward to today in the wake of reports of confusion at Town House.

The meeting was called to discuss the suspension of Town Clerk Ronnie Dube who was suspended two weeks ago on corruption allegations.

It was further reported that it was also to rescind the Housing Director Brian Nyamande.

However, only five councillors attended, falling short of the required six to form a quorum.

According to Mayor Tuso Moyo, the meeting was urgent, but the lack of quorum prevented any progress.

However, residents’ associations disputed this agenda, stating that the meeting was against the will of the residents and that they were expecting it to take place on Thursday.

Hwange District Residents Association and Victoria Falls Combined Residents’ Association representatives and a few residents were gathered outside the boardroom, awaiting the outcome of the meeting.

The suspension of Dube has sparked controversy, with many calling for transparency and accountability.

The aborted meeting has only added to the uncertainty, leaving many questions unanswered, HWANDRA chair, Hebert Ncube said after the meeting.

“We also gather that the minister, Daniel Garwe, has summoned the two and the mayor, deputy mayor to Harare tomorrow where they just came from again last week. There is so much pressure to rescind the suspension of Dube, but we are saying, he should come here and talk to the people and let justice handle this, then he can be rescinded.”

Hwange

Hwange Local Board cracks down on overdue license fees

Published

6 days ago

December 16, 2024

VicFallsLive

BY STAFF REPORTER

The Hwange Local Board has issued a stern warning to business owners with overdue license fees, stating that trading licenses for the 2025 license year will not be renewed for commercial properties with outstanding accounts.

According to a notice issued by Acting Town Secretary Mr. Paul Mabhureni, “Hwange Local Board would like to advise the business community that we will not renew trading licenses for the license year 2025 to all commercial properties whose accounts are in arrears.”

The notice further states that “The Business License Renewal period for the license year 2025 commenced in November 2024 and ends on 31 December 2024.”

Additionally, the notice reminds business owners that, “In terms of the Shop Licences Act Chapter 14.17, no person shall in any shop, store or other fixed place of business, carry on the trade or business of selling or letting for hire any goods except in terms of a shop licence.”

Business owners who fail to renew their licenses within the stipulated timeframe will face penalties, including a fine of one-twelfth of the appropriate license fee for each month or part thereof that has elapsed since their liability arose.

The notice concludes by advising business owners to ensure that their premises are inspected prior to renewing their trading licenses, and urging cooperation in settling outstanding accounts to avoid disruptions to their operations.