Zimbabwe Situation

‘Now let’s lower the tariffs’

Source: ‘Now let’s lower the tariffs’ | The Sunday Mail April 1, 2018

Dr Sifelani Jabangwe
The opening of Kariba South Extension will go a long way in ensuring that Zimbabwe has stable electricity supply.

It reduces our electricity import bill which has been draining the fiscus in terms of foreign currency.

We have always said there is need for investment in power and this is a step in the right direction and must be commended.

We can take this as a new investment since it’s a new generating plant which is starting to operate now

In terms of the electricity tariffs, Zesa says they are the lowest in the region.

However, we feel they are low for the purposes lighting houses and for purposes of effective industrialization, they are still on the high side.

We need to meet somewhere; we need, yes, to improve our efficiency in terms of how we use our electricity in the industry, we also have to insure that the power can be in a range that makes us also to be competitive, significantly competitive so that we can export to the region as well.

The average regional price stands at 7,50c/kWh compared to 12,8c/kWh we pay in Zimbabwe, which is expensive.

If you look from the angle of industrialised countries like China, they use power at 7c/kWh, which is a source of competitive advantage.

Now the importer of minerals will add value to them and after adding value, they sell back to us.

We are now buying at higher prices from them and they are making more money.

If the country could reduce its electricity tariff for industry to that level of around 7,50c/kWh, it would go a long way in improving its competitiveness as electricity is one of the key cost drivers of the manufacturing industry.

Dr Sifelani Jabangwe is the president of the Confederation of Zimbabwe Industries. He made these remarks last week in an interview with The Sunday Mail Reporter, Norman Muchemwa

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