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ZESA Imports Power From South Africa’n Eskom

October 6, 2023
1
ZESA  Imports Power  From South Africa’n Eskom

Power utility ZESA Holdings is utilising a huge chunk of its resources to import power from neighbouring countries, with the import bill ballooning to US$250 million a year.

Local businesses and residents of affluent suburbs have been forced to use backup diesel generators due to power blackouts.

ZESA Holdings’ power generation unit, the Zimbabwe Power Company, generates about 1 500 megawatts per day, against a national demand of at least 1 800MW.

In order to cover the shortfall ZESA imports from South Africa’s power utility Eskom, Hydro Cahora Bassa of Mozambique, and from Zambia.

Speaking during the signing of an MoU between ZESA Enterprises and Chinese firm Dinson Iron and Steel Company, ZESA executive chairman Sydney Gata said the power utility was spending too much on power imports. Gata said, as quoted by Business Times:

We are spending too much. In one year we spent a quarter of a billion dollars but I am pleased to say that our government is aware of the challenges and we are working on initiatives that will bring an end to our challenges.

Turning to the deal with Dinson Iron and Steel Company, which is constructing a US$1.5 billion steel manufacturing plant in Manhize near Mvuma, Gata said the power utility will be able to acquire steel products locally. He said:

In terms of the agreement, we will provide steel products for use in infrastructure with the most notable being transmission towers and steel used for power transmission infrastructure.

We have been importing this from China, Japan, India and sometimes also from South Africa. We will make them here in Zimbabwe and we are grateful for this game-changer.

Steel is a major part of the transformation of any economy for the good of the nation as a whole.

ZESA Enterprises Managing Director Godfrey Mugaviri signed on behalf of the power utility.

Dinson Iron and Steel company chairman Benson Xu said:

To me the most important things are steel and power, that is electricity. Without electricity and steel, there is no vision to talk about.

Vision 2030 mainly talks about industrialisation and it is all about power and steel at the end of the day.

I am happy our company is part of the journey to achieve that. I am happy we are strengthening relations between ZESA Enterprises to achieve the targets of that vision together.

Source Pindula News

Tags: power utility EskomZESA

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