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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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Tuberculosis treatment in jeopardy as Zimbabwe loses US Aid

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Natasha Gwashure holds her son, Anashe, who is receiving free tuberculosis treatment at Beatrice Road Infectious Diseases Hospital in Harare. The hospital, which has relied on USAID funding for TB treatment, faces uncertainty following a US aid freeze.

BY LINDA MUJURU

Natasha Gwashure watches as tuberculosis ravages her 1-year-old son Anashe’s frail body. He has been ill for more than a month. Gwashure struggles to accept the diagnosis. Her only solace is that they have access to free medication.

 

“Without this support, the chances of defaulting on treatment because of monetary constraints would have been significantly higher,” she says.

 

For years, the United States Agency for International Development has stood at the front lines of Zimbabwe’s TB battle, providing critical support for detection, treatment and prevention. But this lifeline now hangs in the balance as a US executive order threatens to undermine years of progress, potentially forcing patients, like Gwashure’s son, to abandon lifesaving treatments.

 

TB is a particularly vicious illness. Left untreated, the mortality rate is about 50%. It spreads easily, when an infected person coughs or sneezes, or even sings or speaks.

 

US President Donald Trump issued an executive order on Jan. 20, his first day in office, to suspend nearly all international aid. That includes USAID programs, which administer lifesaving health and other services around the world.

 

The recent funding freeze leaves a huge gap in Zimbabwe, where nearly all funding for TB treatment comes from international donors. Just 4% of that funding is domestic.

 

In 2024, USAID allocated 7 million United States dollars for TB treatment, screening and other necessary interventions in Zimbabwe. Despite decades of medical advances, tuberculosis still rampages across the globe. TB affected 10.8 million people in 2023; 1.3 million of those were children.

 

In Zimbabwe, the battle against TB reveals a health care system struggling to keep up. In 2021, just a little over half of an estimated 30,000 new infections received treatment.

 

The human cost of scrapping USAID programs is already evident here. Hospitals that once benefited from US-backed health programs now face mounting pressure as health workers supported by these initiatives have been forced to stop working.

 

A local nurse, who requested anonymity for fear of retribution, says it’s strained an already overextended health care system. She says that nurses previously funded by USAID-backed organizations, who primarily cared for patients with HIV, TB and other diseases, have stopped reporting to work. And what used to be handled by a full team of nurses is now falling on just a handful.

 

The freeze has begun dismantling Zimbabwe’s TB care network. New Start Centre — once a cornerstone facility, providing essential CD4 count testing, TB screening, diagnosis and counseling — has already gone dark, its doors closed as funding runs dry.

 

Noah Taruberekera, executive director of Population Solutions for Health, which has relied on USAID support for these centers, acknowledges the dire challenges now confronting patients and health care providers. He says he is not authorized to share additional details.

 

The funding crisis ripples beyond TB control, casting a shadow over HIV programs — a critical concern since TB preys particularly on those with HIV. While effective antiretroviral therapy can reduce the risk of developing TB, ongoing screening and preventive measures are vital for those with HIV.

 

HIV co-infection affects 68% of TB cases in Zimbabwe, but the national government covers only 7% of the required TB budget. International donors contribute 60%, leaving a significant funding gap.

 

Despite the mounting challenges, Dr. Fungai Kavenga, deputy director of TB and prevention control in the government’s Ministry of Health and Child Care, remains hopeful.

 

“If donor support diminishes, I am confident that the government of Zimbabwe can still ensure a steady supply of treatment for TB patients,” he says.

 

But Barbara Samu, a TB patient receiving care at Beatrice Road Infectious Diseases Hospital, underscores the critical role of donor support. She received free medication because USAID supported the hospital.

 

“I can’t even begin to imagine where I would find the money for treatment,” she says. “I would be facing a death sentence.”

 

Global Press is an award-winning international news publication with more than 40 independent newsrooms in Africa, Asia and Latin America.

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Hwange mourns the loss of Africa’s giant: Big Charlie Nyoni

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BY NOKUTHABA DLAMINI 

The community of Hwange is in mourning after the passing of Charles Nyoni, affectionately known as Big Charlie, a giant of a man who stood at an astonishing 2.10 meters tall and weighed 288kg.

Big Charlie’s demise yesterday has sent shockwaves throughout the nation, with many remembering him as a gentle giant and a local icon. His larger-than-life personality and towering physique earned him the title of Hwange’s own Goliath and possibly the biggest man in Africa.

According to a close relative, Big Charlie was admitted to St. Patrick’s Hospital last Friday, where he succumbed to his long-standing health issues. He had been battling gigantism, acromegaly, high blood pressure, and diabetes in recent years.

The Office of the MP for Hwange Central constituency has issued a statement confirming Big Charlie’s passing and appealing for urgent financial assistance to cover his medical expenses. The community is rallying around the Nyoni family, with many calling for support to help with the burial costs.

“Big Charlie was more than just a local celebrity; he was a symbol of hope and resilience for our community,” said Daniel Molokele, Hon. MP for Hwange Central constituency. “We urge everyone to come together and support the Nyoni family during this difficult time.”

As the community comes to terms with the loss of this giant of a man, memories of his infectious smile, kindness, and generosity continue to flood social media. Big Charlie’s legacy will undoubtedly live on, inspiring future generations with his remarkable story.

The family has appealed for donations to help with the burial expenses. Those wishing to contribute can contact Florence Sibanda on 078 732 8056.

 

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ZIMRA customs officer appears in court for criminal abuse of office

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BY STAFF REPORTER 

A Zimbabwe Revenue Authority (ZIMRA) customs officer, Phillip Kuvenga, has been accused of criminal abuse of office for allegedly assisting in the importation of banned motor vehicles.

Kuvenga, 28, who is stationed at Victoria Falls, allegedly received documents from clients, completed valuation sheets, and carried out the valuation process. However, he is accused of endorsing different chassis numbers to deceive his supervisors during the validation and approval process.

After obtaining approval, Kuvenga would capture the correct chassis numbers in the ASYCUDA World System. He would then alter or replace the documents submitted earlier to his supervisors.

The offense came to light when a motor vehicle that had not yet arrived in Zimbabwe was found to have been already registered. A thorough check by ZIMRA led to Kuvenga’s arrest.

Kuvenga appeared in court on February 1, where he was denied bail by Magistrate Gift Manyka. He is expected to appear in court again today for another bail hearing.

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