Page 15 - AfrElec Week 42 2021

AfrElec NEWS IN BRIEF AfrElec

GDP, according to the latest World Bank
figures from 2019, and could be more because
Zambia’s economy contracted sharply last
year.
The figures published by the ministry on its
website include $16.86bn in foreign holdings,
of which $520mn is interest arrears. Zambia
became Africa’s first COVID-19 pandemic-era
sovereign default at the end of last year.
The remaining $10.1bn was local currency
debt, the figures showed.
President Hakainde Hichilema won a
landslide election victory in August, beating
incumbent Edgar Lungu, in part on a promise
to clean up corruption and untangle its
myriad debt woes.
His Cabinet has since sought to bring debts
accumulated under the former administration
to light, so that the southern African country
can get IMF emergency relief.
“In line with its commitment for greater
transparency, the Ministry of National
Planning and Finance of Zambia has
published a detailed summary of debt figures
as of end-June 2021,” a statement from the
revenue from April 1 next year due to a accordance with a future method that still has ministry said.
decision made by energy regulator Nersa that to be determined. Zambia’s foreign debt is spread across
50% of its voting board members opposed. It had published a consultation paper about diverse regions, with a $6bn chunk owed to
It was only the casting vote of the acting the principles underlying such a new method China and rest owed to various banks, nations
chair, Advocate Fungai Sibanda, that tipped a few days before the Nersa board meeting. and multilateral institutions.
the scale towards the rejection of Eskom’s “Nersa has seemingly come up with the
latest tariff application “in favour of a fanciful idea of an interim arrangement, in terms
tariff determination process that is simply of which, as reflected in the 30 September
incapable of lawful completion in time for the media statement, it seems to expect Eskom to HYDRO
15 March 2022 deadline”, says Eskom CFO begin now to prepare an interim application
Calib Cassim in an affidavit filed in support of in terms of unspecified ‘principles of a new Egypt faces unjustified
the application. approach that is under consideration’,” says
Eskom submitted its tariff application for Cassim. intransigence from Ethiopia
the period April 1, 2022 to March 31, 2025 on “It has given no guidance as to what
June 2 this year, says Cassim. That was done in those principles might be. It has simply over GERD: Sisi
terms of the current set of rules that has been informed Eskom by letter dated 5 October
used before, which will only be invalidated 2021 that it ‘Is requesting Eskom to submit Egyptian President Abdel Fattah al-Sisi on
when Nersa publishes new rules after duly a new application in line with the revised Tuesday said that his country seeks to reach
consulting with stakeholders. principles which are to be approved once a just solution to the issue of the Grand
The submission was done timeously to give the consultation and internal Nersa approval Ethiopian Renaissance Dam (GERD) against
Nersa ample opportunity to allow for public processes are finalised’. intransigence from Ethiopia.
participation, including conducting public This came during in Sisi’s speech at the
hearings and deliberating on the application tripartite summit between Egypt, Cyprus and
and stakeholder comments before making Greece, held in the Greek capital, Athens in
a determination in time for the tabling in DEBT the presence of the Prime Minister of Greece
parliament. Kyriakos Mitsotakis and the President of
In terms of the rules of its own Minimum Zambia owes $27bn in Cyprus Nicos Anastasiades.
Information Requirements for Tariff Sisi stressed Egypt’s high priority of water
Applications, Nersa is supposed to return an foreign and local public security and his country’s rights in the waters
application to Eskom within 14 days should of the Nile River, as this is a crucial issue that
it be found to be non-compliant. This did not debt requires all possible efforts to reach a binding
happen. legal agreement on the rules for filling and
In fact, Nersa failed to process the Zambia’s total public debt to foreign and local operating the contentious dam.
application and the first formal step to deal lenders was just shy of $27bn at the end of The UN Security Council issued a
with it came on September 30 when the June, the Finance Ministry revealed, Reuters statement in mid-September on the GERD
energy regulator decided to reject it and reported. dispute encouraging Egypt, Ethiopia and
invite Eskom to prepare a new application in The figure was equal to about 115% of Sudan to resume negotiations, under the

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