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Zimbabwe has least competitive electricity costs in the region
16 Oct 2015 at 07:30hrs | Views
Zimbabwe has the highest and least competitive electricity costs in the region, a situation which has made its exports unattractive.
In Zimbabwe, users are required to pay an effective tariff of 14,5 cents per KWH to avoid being load-shedded compared to an average of 8,3 cents per KWH in Botswana, Mozambique, South Africa and Zambia.
Policy Coordination and Promotion of Socio-Economic Ventures in the President's Office Minister Simon Khaya Moyo said the current uncompetitive electricity costs are prohibitive to economic growth as companies cannot export at competitive prices on the back of weakening regional currencies.
He said this scenario is typical across various sectors of the economy where on average, Zimbabwean firms borrowing costs are twice to three times higher than the levels obtaining in the region.
Miners said the prevailing high lending rates are a reflection of combined effects of several factors, but paramount among them being the widespread perceived risk and limited investor confidence.
In Zimbabwe, users are required to pay an effective tariff of 14,5 cents per KWH to avoid being load-shedded compared to an average of 8,3 cents per KWH in Botswana, Mozambique, South Africa and Zambia.
Policy Coordination and Promotion of Socio-Economic Ventures in the President's Office Minister Simon Khaya Moyo said the current uncompetitive electricity costs are prohibitive to economic growth as companies cannot export at competitive prices on the back of weakening regional currencies.
He said this scenario is typical across various sectors of the economy where on average, Zimbabwean firms borrowing costs are twice to three times higher than the levels obtaining in the region.
Miners said the prevailing high lending rates are a reflection of combined effects of several factors, but paramount among them being the widespread perceived risk and limited investor confidence.
Source - the herald
