Online Reporter
Rutendo Nyeve, Victoria Falls Reporter
THE Zimbabwe Electricity Transmission and Distribution Company (ZETDC) is owed more than ZWG14 billion, with local authorities and the Industrial-Ferrochrome sector among the top defaulters, it has emerged.
After deferring ZWG2,87 billion to 2026, the net debt balance at present stands at ZWG11,58 billion. The Industrial-Ferrochrome sector owes ZWG4.63 billion, representing 32 percent of the total, while local authorities owe about ZWG2 billion, accounting for 14 percent of the debt.
The commercial sector (ZWG2,94 billion) and mining sector (ZWG1,95 billion) are also major contributors to the utility’s mounting debt, which continues to undermine Zesa’s operational capacity, hinder infrastructure maintenance, and deter potential investors needed to end the country’s power deficit.
Zesa Holdings’ acting chief executive officer, Engineer Cletus Nyachowe, revealed the figures during a recent meeting with parliamentarians in Hwange. He said that despite interventions, debt from local authorities continues to grow, placing a heavy strain on the power utility.
“Local authorities are one of the biggest debtors. We have discussed with the Minister of Finance and they did offset at some stage,” said Engineer Nyachowe.
He added that central Government directives require municipalities and rural district councils to be financially autonomous and responsible for their obligations.
“Zesa should access and receive funds so that it can amortise the debt they owe.
“We are owed a lot of money, and you know the sensitivity — it is water, sewer and so forth. To switch that off, you know what comes with it. So we really need to have that debt sorted out. And it is a big, big issue.”
Engineer Nyachowe highlighted that some progress had been made with Government departments through debt offsetting arrangements amounting to over a billion Zimbabwean dollars. He emphasised that for the electricity sector to be sustainable, consumers must pay for what they consume.
“This not only helps Zesa but brings investor confidence. There are people building power stations for their own consumption and even putting extra capacity, which is then sold to Zesa. If people do not pay, we cannot pay for it and investors lose confidence,” said Engineer Nyachowe.
The accumulating debt from local authorities not only hampers Zesa’s ability to pay independent power producers but also deprives the utility of the capital required to refurbish ageing infrastructure and invest in new generation projects.
