Pre-paid meters irk farmers

Senior Reporter
THE installation of pre-paid electricity meters on farms by Zesa Holdings is expected to have a significant impact on various levels of agriculture across the country.

The pre-paid electricity meters were introduced on the farms to keep the energy sector going. Farmers argued that they must be asked to pre-pay electricity for domestic consumption not for production.

The Manica Post was this week inundated with calls from farmers who bitterly complained that the move as at variance with regional, continental and international trends and likely to destroy commercial agriculture in the country.

Most farmers in Zimbabwe are primary producers whose profit margins are very little.

They complained that they were being compelled to pre-pay electricity at a time they were not accessing lines of credits from banks or in cases where banks finance them, they do so at high interest rate.

Platinum Agriculture managing director, Mr Dakarai Mapuranga, said farmers were already saddled with exorbitant water and electricity bills which were chewing up to 60 percent of profits.

Commercial agriculture is hugely reliant on irrigation and energy.

Mr Mapuranga called for a review of policy, failure of which will see most farmers being gradually pushed out of business when other costs of productions are summed.

Though efforts to get a comment from the Minister of Energy and Power Development, Dr Samuel Undenge, were fruitless, The Manica Post understands that Zesa started rolling out the project a month ago, much to the chagrin of farmers.

“This is a first of its kind in the whole world. It has never been practiced anywhere because it is one sure way of destroying commercial agriculture at a time we need farmers to improve production to enhance food security.

“You cannot ask farmers to pre-pay for the electricity when banks are not giving them loans and in cases they do so, they do so the loans are seasonal, that is three to four months, and at exorbitant interest,” said Mr Mapuranga.

“If we are serious about farming, then there is need for review of this policy. Many farmers will respond by scaling down operations as they downsize the hectarage,” said the seed potato producer.

Tobacco Association of Zimbabwe president, Mr David Guy Mutasa, said the impact would be felt across all sectors of agriculture.

“Every agriculture sector is suffering from discernible income constraints and the question is can these farmers raise enough cash to pre-pay. Tobacco takes long before a farmer can get income, the same applies to plantation and livestock farmers. Even horticulture farmers who get instant cash, can they afford to pre-pay given the volume and size areas to be irrigated,” said Mr Mutasa.

Due to the volatile nature of agricultural markets, farm businesses are exposed to a high level of risk. Changes in electricity pricing regime will have a significant impact on the risk position and subsequent financial stability of a farm business.

Agriculture Minister, Dr Joseph Made, said farmers had approached the ministry expressing “genuine areas of concerns”.

“We need to get a proper survey, but this is coming at a time we are intensifying our irrigation and you can imagine. As we intensify irrigation, we also need to keep the energy sector going.

We have to explore energy efficient technology. It may improve on efficiency and effective use of energy. We need that survey because we might start complaining, but later may find it an efficient alternative,” said Dr Made.

Dr Made also said farmers must be supported to develop alternative sources of energy on the farm.

“This is the trend world over and we should not leg behind. We must explore bio gas and farmers must be supported to develop this alternative source of energy,” he said.