Call for cheaper electricity to boost sugar industry

RYAN CHIGOCHE

 

The National Competitiveness Commission (NCC) has called on  State-owned power utility ZESA to provide affordable electricity to  the sugar industry meant to enhance the competitiveness of the sector, Business Times can report.

NCC also  urged ZINWA to charge for water used and not the flat rate they are currently billing.

Douglas Muzimba, the NCC chief economist, who spoke at the recent launch of the  NCC’s 2021 Sugar Industry Value Chain report, said: “Government must assist in creating an enabling environment through availability of affordable electricity through the recapitalisation of the Zimbabwe Electricity Transmission and Distribution Company (ZETDC).”

He added: “Through ZINWA the government must also facilitate the construction of additional water canals and rehabilitation of existing canals to minimise water leakage. They also called for water to be charged against usage, not a flat amount.”

He said the volume of water flowing from major water reservoirs, through canals managed by ZINWA to water points accessible to farmers  was failing to meet the demand as there has been an increasing number of out grower farmers as well as the expansion under sugarcane cultivation.

Resultantly, it is now taking longer for downstream farmers to get water leading to rationing of water and access to farmers on a rotational basis, compromising the quality of the sugarcane in the process.

Muzimba also said the recapitalisation of NRZ  was critical to enhance efficiency in the transportation of sugar cane as well as distribution of the final product.’’ The NCC is also worried about the volatile economic environment.

On a positive note, land designated for sugarcane in Zimbabwe has been growing steadily to 46 000 hectares designated for the crop in 2021 from 43 128 in 2015.

The period between 2015 and 2021 however saw notable dips in hectares under the crop after it plummeted to 36 078 ha and 40 251 ha in 2019 and 2020, respectively.

 

 

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