Page 11 - AfrElec Week 28 2022
P. 11
AfrElec POLICY AfrElec
Zimbabwe gives ZESA permission
to bill in foreign currency
ZIMBABWE ZIMBABWE’S central bank has renewed a reg- to 192% in June alongside a sharp depreciation
ulation permitting the power utility ZESA Hold- in the Zimbabwean dollar.
ings (ZESA) to bill exporters for their electricity “This order shall cease to have effect in rela-
usage in foreign currency. tion to exporters and partial exporters who are
Exporters can now pay for their electricity in residents of Zimbabwe six months after it is
dollars, euros and other foreign currencies using published, unless earlier renewed for a period
the international cross rate, according to the not exceeding six months,” Bloomberg cited the
Exchange Control Order published on July 11 in Government Gazette as saying.
the Government Gazette, Bloomberg reported. Zimbabwe needs about 1,800MW of electric-
This permission by the Reserve Bank of Zimba- ity, but due to limited generating capacity, ZESA
bwe (RBZ) is valid for six months. only produces 1,400MW at best. On Thursday
This follows the granting of the same permis- (July 14) it was producing 1, 219MW. It covers
sion to ZESA in early December 2019. Then, the the deficit via load shedding and supplies from
power utility was bound to open a special bank Mozambique and South Africa, when foreign
account into which the foreign currency was to currency is available.
be deposited. The money was to be spent only to ZESA executive chairman, Sydney Gata said
pay for electricity imports, spare parts or critical in March 2022 that the utility needs $17mn
equipment, for foreign loan repayments and for- monthly to pay for electricity imports but com-
eign insurance premiums, state-owned daily The plained that the RBZ was refusing to provide that
Herald reported at the time. money.
Zimbabwe needs to boost its foreign currency However, direct billing in foreign currency
reserves because it is in the midst of a currency could boost the state company’s capacity to pay
crisis that has seen the annual inflation rate jump its suppliers.
Output at Mozambique hydro
generator HCB up 15% in H1 2022
MOZAMBIQUE MOZAMBIQUE’S majority govern- throughout the production chain.
ment-owned hydroelectrical generator, Hidro- “We have the duty to manage and operate the
elétrica de Cahora Bassa (HCB), produced 7.965 company in a judicious, responsible and trans-
gigawatts per hour of power in the first half of parent manner to achieve its objectives,” he said.
2022, up 15% year on year, according to Portu- The company also said that in the first half of
guese news agency Lusa. this year the dam’s water resources were 324.63
“This production was achieved without the metres above average sea level, which corre-
occurrence of work accidents and exceeds the sponds to 93% of its useful storage capacity.
most optimistic expectations at the mercy of the “The achievement of this storage level results
availability of hydro and production equipment,” from judicious measures adopted during the last
HCB is quoted as saying in a statement. rainy season,” he said.
HCB generates power at a facility at Cahora The Mozambican state holds 85% of HCB’s
Bassa Dam on the Mozambican leg of the Zam- shares, 7.5% belong to the Portuguese Redes
bezi River, which flows through six southern Energéticas Nacionais, and 4% are from national
African countries. It provides about 79% of investors, with the remaining 3.5% held by HCB
Mozambique’s demand and exports power to itself.
Zimbabwe, South Africa and other countries in In 2021, the company dispatched
the region. 14,990GW/h of electricity, 6.12% of planned
HCB chairperson Boavida Muhambe said the output.
results will allow the company to strengthen the On the company’s shares on the Mozambique
financing for rehabilitation projects underway Stock Exchange, HCB noted:
Week 28 14•July•2022 www. NEWSBASE .com P11
