High tariffs by Zesa, stifling local manufacturing sector

Industry has reiterated that high electricity tariffs continue to pose a danger to the survival of most companies.

Speaking during a tour of Zim Alloys Limited in Gweru recently by Industry and Commerce Minister Mike Bimha, Confederation of Zimbabwe Industries Midlands chapter vice president, Mr Jabulani Chirasha said high tariffs being charged by Zesa Holdings were stifling the local manufacturing sector's viability.

Mr Chirasha said there was need for Zesa Holdings and its subsidiaries to reduce their tariffs to enable companies that have plunged into huge debts to resuscitate.

"Zesa needs to realise that they are a service provider and a strategic parastatal that should not concentrate on making profit but providing service to the local industry that can turn around the country's economy," he said.

"Zesa must make sure that the industry is functional and ensure adequate power is there for the industry so that the industry generates money for the country."

Midlands companies have been forced to either scale down production or suspend operations due to electricity debts and intermittent supplies.

Zimglass was recently temporarily disconnected by Zesa over a debt, while Sable Chemical Industries, the sole producer of ammonium nitrate (AN) once suspended operations after failing to settle Zesa debts.

Sable Chemicals has since embarked on a coal gasification project which requires less power.

Energy and Power Development Minister Dzikamai Mavhaire recently urged companies owing Zesa and its subsidiary companies to settle their debts to also ensure that the power utility would be able to supply electricity to the nation as and when it is needed.