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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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In the community

Free dental outreach treats over 700 in Victoria Falls

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BY NOKUTHABA DLAMINI

More than 700 residents in Victoria Falls have received free dental care following a three-day outreach programme held at Mkhosana Clinic.

The initiative, led by global charity SmileStar in partnership with CIMAS, saw 705 patients treated between 9 and 11 March. The programme builds on previous outreach efforts in the region and is expanding this year to include Matobo.

A team of 16 volunteer dental professionals—many from Dentex—provided urgent treatment, pain relief, and oral health education, while also sharing skills with local healthcare workers.

Team leader Dr Mitesh Badiani said tooth decay linked to high sugar consumption, particularly among children, was the most common issue encountered.

“Many of these dental problems are preventable, and education plays a key role in helping to avoid such problems in the future,” he said.

The outreach received support from Africa Albida Tourism, with the team hosted at Victoria Falls Safari Lodge.

Africa Albida Tourism managing director Nigel Frost said the initiative would have lasting benefits for the community.

“This initiative provides vital dental care and education that will continue to benefit the residents of Victoria Falls long after the clinics have ended,” he said.

Mark Cockburn added that the programme highlighted the impact of volunteerism in addressing healthcare gaps.

Following the Victoria Falls outreach, SmileStar continued its programme in Hwange, before moving to Matobo today and tomorrow at Ethandweni Children’s Home, with a target of treating more than 1 000 patients across the three regions.

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In the community

Kamativi mine to relocate 65 graves to pave way for operations

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BY STAFF REPORTER

Sixty-five human remains are set to be exhumed from the Kamativi Mining Company premises in Matabeleland North as the firm moves to clear a section of land earmarked for ongoing mining operations.

The development follows a formal notice issued by Kamativi Mining Company in compliance with the Cemeteries Act, which governs the handling and relocation of human remains.

“Notice is hereby issued by Kamativi Mining Company in compliance with the Cemeteries Act, Chapter 5:04, regarding the relocation and reburial of 65 graves situated within the dry tailings operational area at Kamativi Mine, located in the Hwange District of Matabeleland North Province,” the notice read.

According to the company, the relocation is necessary to ensure that mining activities within the affected zone can proceed safely and sustainably.

The graves are located within the mine’s dry tailings operational area, a key section linked to current and planned extraction processes.

While the notice outlines compliance with legal requirements, the move is likely to raise sensitivities among local communities, given the cultural and emotional significance attached to burial sites.

Kamativi Mining Company has urged stakeholders and individuals with concerns or inquiries to engage directly with the company for further clarification on the exhumation and reburial process.

No timeline for the relocation has been publicly disclosed.

Additional reporting source: Byo24 News

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National

Flooding risk rises in Zimbabwe, Southern Africa as heavy rains forecast

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Flooding is expected to intensify across parts of Southern Africa, including Zimbabwe, as heavy rainfall continues to affect the region, according to the latest weather hazards update from the Famine Early Warning Systems Network (FEWS NET).

In its Global Weather Hazards Summary for March 12–18, FEWS NET said moderate to locally heavy rainfall has been observed across several countries in the region, raising concerns about flooding in vulnerable areas.

The agency said the rainfall has affected western, central and eastern parts of Southern Africa, including Angola, Zambia, Malawi, central Mozambique, northern Madagascar, Botswana, Namibia, South Africa and Zimbabwe.

“During the past week, moderate to locally heavy rainfall was observed over northern, central and eastern Southern Africa,” FEWS NET said in the report.

The agency noted that flooding has already been recorded in some parts of the region, including Cunene Province in southern Angola and Rundu in northern Namibia, as rainfall continued across several countries.

Over the past 30 days, cumulative rainfall has been above average across southeastern Angola, northeastern Botswana, central South Africa, Lesotho, central and southern Zimbabwe and parts of Malawi and Mozambique, increasing the likelihood of flooding in low-lying and flood-prone areas.

FEWS NET warned that the situation could worsen in the coming days.

“(This week) , heavy rainfall is predicted over northern and eastern Zambia, including central and northern Angola, central and eastern Zambia, Malawi, northern and eastern Zimbabwe, Mozambique, northeastern South Africa, Eswatini and northern Madagascar,” the report said.

According to the outlook, the forecast rainfall raises the risk of flooding in many local areas across the region, particularly where soils are already saturated following weeks of above-average rainfall.

The weather monitoring agency also noted that hot conditions are likely in western Angola and southwestern Madagascar, even as other areas brace for continued heavy rains.

FEWS NET provides climate and food security early warning information to support humanitarian planning and disaster preparedness across vulnerable regions.

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