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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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National

Econet unveils new home and business data packages

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BY NOKUTHABA DLAMINI 

Econet Wireless Zimbabwe has launched new ‘Smart-Suite’ Fixed Wireless Access (FWA) data packages consisting of six plans tailored to address the data needs of different customers – from the ‘SmartLite’ plan, offering 50GB of data (best for light users) and retailing for $30, to ‘SmartPro’, offering 800GB of data (ideal for established SMEs) and retailing at $170.

In between are ‘SmartPlus’, offering 75GB at $40 (targeting families); ‘SmartMax’, offering 100GB at $50 (ideal for bigger homes and freelancers); ‘SmartFlex’, offering 200GB at $70 (tailored for flexible scaling and small offices) and ‘SmartUltra’, offering 400GB at $99 (suitable for heavy, multi-users and SMEs).

Introducing the SmartSuite packages on multiple media channels, Econet said the new data packages will be easy to upgrade and will offer flexible plans “that grow with your needs”.

To ensure optimized and stable performance within a customer’s premise and network coverage area, the new packages will be geo-locked to a customer’s location, and accessible using a 4G or 5G CPE (customer premises equipment) router.

Geo-locking – a term used to describe the restriction of access to a product or service to a specific geographical location – ensures customers get the best possible usage experience while enabling service providers like telcos and Internet Service Providers (ISPs) to ringfence critical resources such as bandwidth, making certain they are utilized by the intended users.

Econet said the SmartSuite packages will be available through its Econet Shops across the country where the company enjoys the largest network coverage, adding that CPE routers will also be available for sale in its shops – starting from US$48 per unit. The company noted though that customers will be free to use their existing CPEs, or to purchase CPEs anywhere elsewhere, as long as they were compatible with Econet’s SmartSuite product specifications.

Econet, which is the largest mobile network operator in Zimbabwe, enjoys the widest 4G (LTE) network coverage in the country. With 300 5G base stations deployed in the country’s major cities and towns, it is by far the market leader in 5G technology in Zimbabwe.

The launch of the new SmartSuite packages follows a notice to customers of the former SmartBiz packages from Econet a month ago, notifying them that it would soon launch new data packages offering more choice and flexibility, and tailored to different customer needs.

Customers registered to the old SmartBiz service and who already have a CPE, can simply dial *143, choose a package of their choice and credit their new SmartSuite package. New subscribers to the SmartSuite packages will however need to buy a new SmartSuite SIM from an Econet Shop, as well as a CPE, for them to be able to connect to the new packages. If they own a CPE that meets Econet’s specifications, they will be able to use it for their SmartSuite package.

Along with the new SmartSuite data packages, Econet continues to offer its all its customers the choice of a wide range of mobile data products, accessible ‘on the go’ throughout the country via the customer’s mobile device or smartphone.

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In the community

Population Services Zimbabwe to offer free family planning services in Nkayi

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 BY WANDILE TSHUMA 

Population Services Zimbabwe (PSZ) is set to provide free family planning services in Nkayi District from next week

The initiative which will run from 15-18, aims to enhance access to comprehensive reproductive health care and empower individuals and couples to make informed choices regarding family planning.

The outreach will kick off on Monday, September 15, at the Sivalo Rural Health Centre (RHC) and its outreach site. This will be followed by activities at various locations each day:

Tuesday, September 16:
Jabulisa at 9:00 AM
Ngabayide at 2:00 PM
Wednesday, September 17:
Sebhumane at 9:00 AM
Nesigwe RHC at 10:00 AM
Thursday, September 18:
Mateme RHC at 9:00 AM
Sembeule at 10:00 AM

The services offered during this campaign include:

Loop insertion and removal
Implant insertion and removal
Depo Provera injections
Secure and control pills
Emergency contraceptive pills
Counselling on reproductive health issues

 

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National

Parliament advocates for youth employment quota amidst growing crisis

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BY NOKUTHABA DLAMINI 

The Parliament convened on Tuesday to discuss a crucial motion demanding the establishment of a quota system for youth employment in the public sector.

This motion is in response to alarming statistics revealing that over 62% of Zimbabwe’s population is under the age of 35, yet these young people face significant challenges in accessing job opportunities.

MP Ropafadzo Makumire, who moved the motion, stated, “I rise today to move this motion in my name with respect for this House and with deep concern for the future of young people.” He articulated the urgency of addressing youth unemployment, citing Section 20 (1) (c) of the Constitution, which mandates that the Government “at every level must take reasonable measures to ensure that the youths are given opportunities for employment and economic development.”

Makumire expressed his concern regarding Statutory Instrument 201 of 2024, which raised the pensionable retirement age for civil servants from 65 to 70 years, declaring, “This unintentionally reduced opportunities for young Zimbabweans entering the workforce.” He emphasized the struggle of the youth, stating, “Every year, over 30 000 graduates leave our universities and colleges. Many struggle to find meaningful jobs… the majority are struggling to meet even basic needs.” He also pointed out that many graduates resort to street vending: “If we can take a sample of street vendors in the streets eof Harare… you are going to realise that the majority of them are graduates. This is a sign that this country is in jeopardy.”

Mutsa Murombedzi seconded the motion and echoed the urgency for action. He remarked, “Our Constitution is clear. Section 20 of the Constitution of Zimbabwe obligates the State to take measures to ensure that youth are afforded opportunities for employment… The Government raised the retirement age for civil servants… it acted in a manner that is inconsistent with this constitutional principle.” He expressed deep concern: “If we do not give the youth jobs, we bury them either in graves of addiction or in airports as they flee this country.”

During the debate, another legislator acknowledged the global unemployment issue, stating, “The issue of unemployment is a global phenomenon… inasmuch as I acknowledge that we have over 62% of youths between the ages of 15 to 35… there are a number of initiatives that have been put forward by our Government to make sure that our youths participate in the mainstream economy.” He mentioned vocational training efforts as critical steps forward: “We have localised some of these programmes that have been implemented… with young people who are taking up vocational training courses.”

Joseph Mapiki raised concerns about the context of employment: “What is happening in the country is totally different from what is happening in other countries… we came up with the law that someone must be able to employ someone, not waiting for someone to employ you.” He highlighted initiatives to empower young entrepreneurs, stating, “We are happy that the Government managed to sign an MoU called India Zimbabwe… where they are purchasing low-priced machines.”

Dexter Malinganiso partially supported the motion, recognizing the demographic dividend of the youth. “It is evident that we have in Zimbabwe a very good demographic dividend that is still energetic, agile, educated and willing to partake in nation building,” he said, while also acknowledging government efforts to create opportunities for youth.

Finally, Tanatsva Mukomberi emphasized the need for progressive solutions. He stated, “It is key to note that solutions come from proper cause and effect analysis. To analyse what actually causes high rates of youth graduates’ unemployment, not just focusing on unemployment per se.” He highlighted the importance of exploring sustainable solutions that enable young people to thrive rather than simply identifying the problem.

 

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