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Oliver Kazunga Business Reporter
THE Confederation of Zimbabwe Industries (CZI) has said Zesa should not be the exclusive focus for the provision of national electricity needs in order to improve availability of power. The resolution was reached at the confederation’s annual congress held in Bulawayo last week under the theme, “Imperatives for Reversing De-Industrialisation”.
“The congress calls on Government to identify quick win projects in the power sector including independent power importers and alternative energy sources. Zesa should not be the exclusive focus for the provision of national electricity needs,” said CZI.
Among other challenges, CZI in its manufacturing sector survey released two weeks ago highlighted that power constraints continued to weigh down efforts to increase capacity utilisation to competitive levels.
Owing to operational challenges facing local industries, capacity utilisation in the manufacturing sector has dropped from 44.2 percent in 2012 to 39.6 percent this year.
During its term, the inclusive Government licensed a number of independent power producers but the projects were yet to be implemented.
CZI past president Dr Joseph Kanyekanye, who is also the Timber Producers Association president, said none of the proposed projects by independent producers would be implemented in the next five years given the level of investment required.
“None of the proposed power projects by independent producers will be constructed in the next five years. As a result the country cannot afford to go for another five years without new power projects having been implemented,” he said.
“Let’s also focus on gas projects; resolving the current power challenges does not mean solving challenges at Zesa. Within the shortest possible time, the new Government should allow independent power importers to come in.”
Dr Kanyekanye said from their analysis it was much cheaper to import electricity during off peak hours.
“Two years ago, we proposed to import 40 megawatts from SCB in Mozambique but the proposal went off because the then Energy and Power Development Minister (Elton Mangoma) did not approve it,” he said.
Delegates at the three-day event that ended on Friday highlighted that Zimbabwe’s labour laws were also an impediment to productivity and competitiveness of industry.
The delegates agreed that it was imperative for the country to come up with a wage system that was productivity driven.
CZI also said the National Economic Consultative Forum should be restructured into a 15-member body on economic and industry issues.
The industrialists agreed that agriculture remained one of the economic enablers as a result issues around the title of the land needed to be resolved.
“We also need a body that monitors and enforces contracts as well as centralised system such as cattle financing,” said the industrial body.
CZI noted that the country’s leaking borders were undermining development and so Government was urged to show more commitment to tightening security at the ports of entry.
On the indigenisation and economic agenda, it was resolved and recommended that there should be flexibility in the implementation of the programme taking into account that industries were facing operational constraints.
Online Reporter