Agric sector biggest defaulter in electricity payments

Source: Agric sector biggest defaulter in electricity payments – NewsDay Zimbabwe June 30, 2017

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) is owed over $108 million by the agricultural sector which constitutes about 10% of its debtors’ book.

BY TATIRA ZWINOIRA in victoria falls

This came amid complaints that farmers were not doing enough to stop thefts and vandalism of electricity infrastructure at farms which is adding to costs.

Speaking at the Zimbabwe National Chamber of Commerce (ZNCC) annual congress in Victoria Falls yesterday, ZETDC managing director Jullian Chinembiri said the greatest culprit among their debtors was the agricultural sector.

“The agricultural sector is very reluctant to pay their bills and what we do is to say for us to have a stable power supply, we need our clients to pay. Right now as we speak, the sector owes us about $108 million and mind you, it accumulated from 2013, where there was that debt relief, which constitutes about 10% of our debtors’ book,” he said.

“If you talk to most of them, they say we are waiting for a debt relief when it comes in 2018, but for us to get to 2018 with irrigation, we have a lot of dams now, for us to be able to use that water in the dams, we need to irrigate and irrigation comes with electricity.

“So, I would say let us also include electricity as an input and let us also encourage the farmers to pay so that at least we also guarantee a power supply.”

According to ZETDC, the agricultural sector was reluctant to pay bills.

Chinembiri said with the threats of having power supply cut off, the agricultural sector needed to pay its dues.

The amount owed is an accumulation from 2013, where farmers relied on debt relief. Electricity is mainly used for irrigation.

Agriculture deputy minister (livestock) Paddy Zhanda blamed non-payment by farmers to inefficiencies when it came to crop yields.

“Farming is about efficiencies. If you cannot achieve the yields, you will not be able to pay your obligations, simple,” he said. “One, two or three tonnes or whatever it is and if you can imagine you can start an engine, motor sprinklers and everything to irrigate cabbages or rape and you think that you can pay your Zesa bills then forget you will not be able to do that. So we need to be efficient.”

Zhanda said farmers need to be cost-effective in doing their work.