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In an interview on the sidelines of the commissioning of equipment for small-scale miners in Umguza on Wednesday, Permanent Secretary in the Ministry of Economic Planning and Investment Promotion Dr Desire Sibanda said although the country was poised for growth, inadequate electricity generation could hinder progress.
He said all sectors of the economy needed adequate power to operate at full capacity.
“The country needs to urgently address the issue of electricity generation, which is a major obstacle in luring investment. Without adequate power supply, the MTP will also fail to achieve its goals,” said Dr Sibanda.
“One of the major reasons why industry is failing to operate efficiently is because of lack of power. In the MTP, we set a target of achieving seven percent annual economic growth and double digit by 2015. In order to achieve this, sufficient electricity generation is key.
“We have been to the BRICS (Brazil, Russia, India, China and South Africa) countries trying to lure their companies to invest in Zimbabwe but how will they invest when we do not have adequate power supply for industry?”
The MTP, launched last year, is a five-year economic blueprint to grow the economy and create jobs.
Economists have also indicated that all things being equal Zimbabwe could attain a $100 billion economy if it records an average of 15 percent annual growth in the next 20 years.
Dr Sibanda urged the private sector to urgently join hands with the Government in boosting electricity generation to ensure that the MTP becomes a success.
“There is a need to have more players in the energy sector and that calls for co-operation between the Government and the private sector. As Government, we have tried to engage the private sector to take part but they have not been forthcoming in this regard.
“The country also needs an effective independent energy regulatory authority. For the past 20 years there has not been talk of enhancing power generation. The country needs private power generators,” said Dr Sibanda.
“The newly formed Zimbabwe Energy Regulatory Authority (Zera) should be assisted. At the moment the country is using 49 percent of our installed capacity, which is generating very little power. In our strategic plan we indicated that the country should generate 3 000 megawatts for this economy to tick, against the 1 200 megawatts we are currently producing.”
Dr Sibanda commended the growth of the mining sector, which he said was now the country’s major revenue generator.
“As Government, we fully recognise the growth of the mining sector, which is now a major contributor to the economy. We also recognise the significant contribution by small-scale miners.
“We also need to attract more investment in mining where there is little potential risk and power supply is also a key factor here.”
During the recent Zimbabwe International Trade Fair business conference, captains of industry challenged the Government to prioritise improving electricity generation saying inadequate power supply was hampering their operations.
Zesa, on the other hand, has insisted that efforts were being made towards improving electricity generation in the local plants.
The power utility said it was working on building new generation plants and ensuring that the old ones were operating efficiently.
Online Reporter