Industry woes mount
….as ZESA demand hefty security cash deposit
LIVINGSTONE MARUFU
Power utility ZESA is putting a strain on local companies by demanding a hefty two months security cash deposit upfront in addition to monthly power bills, Business Times can report.
The latest development was revealed by the Confederation of Zimbabwe Industry president Kurai Matsheza, who spoke at the unveiling of the 2023 CZI Manufacturing Sector Survey report held in the capital last week.
He said it has worsened the industry’s woes.
“Electricity is a big issue for Zimbabwe.
“Not only in terms of availability, but in terms of the cost structure that is there.
“Now, ZESA is coming to industry to apply Statutory Instrument 115 of 1988 which says for every manufacturer to operate,there is a need to pay a deposit of two months to make a deal [continue operating].
“This started in May this year and the authorities would want to see a deposit upfront of up to July.
“The assumption is companies are awash with money. It is a wrong assumption,” Matsheza said.
He added: “I know the utility is going to take time on the issue, but we need to come together to address this issue.”
ZESA is currently charging USc17/ per kWh and has been one of the major reasons for lack of competitiveness for the local products.
Matsheza lamented the exorbitant cost of electricity.
“To say Zimbabwe electricity is one of the cheapest is not correct.I don’t think it is true. It is not true.
“We are actually one of the countries with high electricity charges.
“We have one of the highest rates in the region.
“We are now comparing ourselves to Mauritius and Seychelles when we have got a different mix all together,” Matsheza said.
Speaking at the same occasion, Energy and Power Development permanent secretary, Engineer Gloria Magombo said: “I will look into the matter and will give an update on the issue but we would want to help the industry to be competitive.”
All efforts to get a comment from ZESA spokesperson Dr George Manyaya were futile.
