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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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Hwange

Hwange Central finally receives long-awaited CDF funds

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BY NOKUTHABA DLAMINI

Hwange Central constituency has finally received its long-awaited Constituency Development Fund (CDF) allocation, marking the first disbursement since 2022, Member of Parliament for the area, Fortune Daniel Molokele, has confirmed.

In a statement, Molokele said an amount of ZiG 1.3 million was deposited last week into a special bank account set up exclusively to administer CDF funds for the constituency. The disbursement falls under the 2024 national budget, following confirmation from the Parliament of Zimbabwe that no CDF disbursement will be made under the 2023 national budget.

He further noted that there is still no clarity on when CDF allocations under the 2025 and 2026 national budgets will be released.

“With this development, our local CDF Committee will, during the coming week, initiate the process of rolling out the approved projects,” said Molokele.

Priority Wards and Projects

The initial phase of implementation will cover five wards, namely Wards 1, 4, 5, 6 and 14, with the remaining wards expected to benefit under the next CDF disbursement.

According to minutes from a public consultation meeting held on 13 April 2024 at St Ignatius Primary School in Hwange, the community unanimously prioritised solar-powered boreholes with JoJo tanks and fenced nutritional gardens as the flagship project for the 2024 CDF cycle.

The project is set to be implemented at the following locations:

  • Ward 1: Chibondo
  • Ward 4: Baghdad
  • Ward 5: Empumalanga
  • Ward 6: Phase Four
  • Ward 14: Ngumija

Other proposals discussed at the meeting included the construction of an Advanced Level laboratory science facility at Nechilisa Secondary School and the refurbishment of Nengasha Stadium, but these were deferred in favour of addressing water and food security.

CDF Committee in Place

The public meeting also elected a new 2023–2028 CDF Committee, comprising:

  • Alice Phiri (Trade Unions, Women and Local Communities)
  • Luka Katako (Traditional Leaders and Faith-Based Leaders)
  • Bryan Nyoni (Youth and Local Communities)
  • Shonipai Muleya (Finance and Accounting)

Francisca Ncube was nominated as the National Assembly representative, while Teresa Kabondo will represent the constituency in the Senate.

The CDF bank account signatories and procurement committee members include Molokele, Luka Katako, Thulani Moyo and Alice Phiri.

Funding Clarifications

Although earlier discussions indicated that the 2024 allocation would include outstanding funds from 2023—bringing the total to an estimated USD100 000, to be disbursed in ZiG at the interbank rate—the Speaker of Parliament later clarified that the 2023 CDF allocation was no longer available.

“As a result, each constituency ended up receiving ZiG 1.3 million, which was meant to be equivalent to USD50 000,” Molokele explained, adding that the approved projects were subsequently endorsed by the relevant Parliamentary committee.

He also confirmed that no CDF proposals have yet been submitted for 2025 and 2026.

Residents seeking further information have been advised to contact CDF Committee Secretary Thulani Moyo on 078 648 3659.

Molokele said at least two public feedback meetings will be held once implementation begins, to ensure transparency and accountability in the use of the funds.

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National

Education ministry launches nationwide one laptop, one iPad per pupil program

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BY LWAZI SHOKO

Zimbabwe has launched a nationwide One Laptop, One iPad Per Pupil initiative aimed at bridging the digital divide and expanding access to technology in schools, Minister of Primary and Secondary Education Torerayi Moyo announced on X on Monday.

The programme, being implemented in partnership with UNICEF Zimbabwe, will see the distribution of ICT equipment including laptops, tablets and projectors to schools across the country, with priority given to disadvantaged and solar-powered schools.

According to Minister Moyo, the initiative is designed to strengthen digital teaching and learning while promoting inclusive and equitable education. He said the programme seeks to ensure that all learners, regardless of geographic location or socio-economic background, have access to modern learning tools.

“As part of this initiative, I had the honour of presiding over the official handover of a major consignment of ICT devices,” Moyo said, adding that the resources would support the delivery of quality education and help prepare learners for a technology-driven future.

The minister described the programme as a transformative step that goes beyond the provision of devices, framing it as an investment in equity, opportunity and long-term national development.

Moyo also paid tribute to President Emmerson Dambudzo Mnangagwa, crediting his leadership under Vision 2030 and the Presidential Computerisation Programme for driving innovation and public-private partnerships in the education sector.

“By placing a laptop and an iPad in the hands of every pupil, we are building the digital foundations of a knowledge-based economy,” he said.

Lastly, expressed gratitude to UNICEF Zimbabwe and other development partners for their continued support, noting that the collaboration is key to building a more connected and future-ready education system.

 

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In the community

Two artisanal miners die in Umguza mine shaft collapse

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BY STAFF REPORTER 

Two artisanal miners have died following the collapse of a flooded mine shaft at Cement Side in Umguza District, ZBC has reported.

The incident occurred early Tuesday morning after heavy water ingress caused the shaft to give way, trapping the two men underground.

When rescue teams arrived at the scene, officers from the Bulawayo Fire and Ambulance Services Department, assisted by local volunteers, were leading recovery efforts.

A survivor of the incident, Khulumani Nkomo, described the terrifying moments leading up to the collapse.

“We heard a loud cracking sound as we reached the ground, then water started rushing in. The two were behind us, and the shaft just closed, trapping the other one in the tunnel,” he said.

Nkomo added that attempts to rescue the trapped miners proved futile.

“We tried to dig with our hands and tools, but the water kept coming. By the time help arrived, it was already too late.”

A brother of one of the deceased miners said the family is struggling to cope with the loss, revealing that the victim was only 19 years old.

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