Commercial Farmers Union of Zimbabwe

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ZESA seals US$230m India deal

ZESA seals US$230m India deal

05/06/2012 00:00:00
by Bloomberg

THE Zimbabwe Power Company has signed a $230 million memorandum of 
understanding with India’s Wapcos Ltd to overhaul the country’s three 
thermal stations.

The plants covered are Bulawayo, Hwange and Munyati, Zimbabwe Power, the 
power generating unit of Zesa Holdings (Pvt) Ltd., said in a newsletter 
published Tuesday.

The memorandum also includes a feasibility study for the Gairezi hydro-power 
station and upgrading the Deka pumping station for Hwange Power Station, 
Zesa said.
It didn’t say when the agreement was signed.
The power utility is struggling to meet national demand with supplies being 
rationed to both commercial and domestic users.

Zesa currently generates about 1,116 megawatts of electricity today against 
a national demand of between 1,900 to 2,200 megawatts and tries to plug the 
gap with imports from regional suppliers.

Govt to restructure energy sector

Govt to restructure energy sector

Written by Taurai Mangudhla, Business Writer
Monday, 04 June 2012 14:40

HARARE - Zimbabwe plans to restructure its energy sector and make way for 
independent power distribution firms, Zesa Holdings (Zesa) chief executive 
Josh Chifamba said.

He told a Thursday Confederation of Zimbabwe Industries Annual General 
Meeting, the move was in line with government’s plans to improve utility 
services while establishing an independent power regulator.

“There is a lot of progress on that and I wouldn’t want to pre-empt it (but) 
there is a whole white paper on that and the minister is supposed to present 
it to cabinet,” Chifamba said without giving specifics of the proposed new 

The energy sector is currently regulated by Zimbabwe Energy Regulatory 

The Zesa chief’s remarks came after Francis Masawi, an engineer and regional 
independent energy consultant, argued there was an  imminent need to 
restructure the country’s power sector.

He said the current single buyer model-only by Zimbabwe Electricity 
Transmission and Distribution Company (ZETDC)-was an impediment to 
investment in the energy sector.

“Imagine you have a private production company and you want to sell to a 
sole buyer that is owed $500 million by their                 consumers, how 
are they likely to pay,” Masawi said.

“That thing (the single buyer model) must be done away with; it doesn’t 
exist in the Act. It was only transitional.”

Masawi said Zesa should assume a role of shareholder only.

He said competition should be introduced in the supply side of electricity 
just as it is required in the petroleum sector.

“Whatever the reason, the current structure has failed to resuscitate the 
energy sector.”

Zimbabwe currently has         capacity to generate about 1 200 MW of 
electricity, mainly from Kariba Hydro Power Station and Hwange Power Station 
(HPS) compared to a rising national demand of around 2 200MW.

The country’s generation capacity is now half of what it used to be in 1980 
when the economy and population was smaller.

New projects that are meant to improve the current deficit position could 
take longer to commence   after potential takers for the  country’s HPS 
rehabilitation project asked for a one month extension on the June 5, 
tendering deadline.

Chifamba said this would delay adjudication of tender to restore HPS unit 
seven and eight to end of July.

“If we get to a financial close by the end of the year then by early 2016 
there should be something coming out of the two projects,” he said, adding 
his organisation was aware of the anxiety among Zimbabweans for an immediate 
power solution. Zesa, Chifamba said, was not spared by the country’s 
decade-long economic stagnation and needs a lot of investment.

“The state of the equipment at all levels is appalling and dangerous.

That explains the number of accidents we are having now.”

In February government announced plans to unbundle the Zimbabwe Electricity 
Transmission and Distribution Company (ZETDC) into two separate entities to 
improve operating efficiency.

ZETDC is responsible generating, transmitting and distributing power and was 
formed in 2002 after government unbundled ZETDC into different companies 
under Zesa.

The Electricity Act ushered in the formation of five successor companies, 
the Zimbabwe Power Company (ZPC), Zimbabwe Electricity Transmission Company 
(Zetco), Zimbabwe Electricity Distribution Company (ZEDC), Zesa Enterprises 
and Powertel Communications.

ZEDC’s business is the distribution and retail of electricity to the final 
end user.

In line with the approved structure, all power generation assets and 
operations are under ZPC.

Zesa Enterprises, another subsidiary of Zesa Holdings comprises of four 
business units namely Zesa Technology Centre, Production and Services, 
Transport Logistics and Projects.

It is a flexible investment arm for Zesa Holdings that has a diversified 
business portfolio.

‘Zesa abandons load shedding schedule’

‘Zesa abandons load shedding schedule’

Saturday, 02 June 2012 18:09

POWER supply remains erratic in most parts of Harare with the Zimbabwe 
Electricity Supply Authority (Zesa) failing to stick to a load shedding 
schedule it published in the media recently, seriously affecting many 
business operations.
Despite the long hours of power cuts, residents complain of exorbitant bills 
at the end of every month. The cost of electricity is affecting thousands of 
households as they have to buy paraffin and firewood at a higher cost, yet 
still have to settle their bills.
Community coordinator, Ronia Gwaze, said that residents of Vainona and 
Hatcliffe suburbs had electricity cut off recently due to unpaid electricity 
bills. Abrupt power outages have resulted in electrical gadgets being 
damaged. In Vainona, a house at 14114 Tern Avenue was gutted by fire caused 
by a burst paraffin stove during one of the numerous power outages. Some 
residents have resorted to using generators or solar lights because of the 
constant power cuts.

Water Supplies
Water supplies in Waterfalls remain poor with most areas going without the 
commodity for several days. During the past week, several residents had 
their water disconnected by the City of Harare yet supplies are erratic. The 
water bills are so high that most residents feel they are unjustified. 
Residents in Glen View are receiving water three times a week. Given this 
situation, residents have to queue at the few boreholes sunk by humanitarian 
Women and school-going children wake up very early to line up for water and 
at times are bullied at the boreholes. Some residents in areas without the 
boreholes have dug shallow wells which are unprotected, raising fears of 
disease outbreaks.

Health and Environment
Refuse is not being collected in Mbare National and Mbare Musika. The same 
situation prevails in Waterfalls at shopping centres such as Park Town and 
Zindoga business centre. Residents of Hatcliffe Extension have resorted to 
burying or burning rubbish in pits.
This is quite the opposite of what is happening in Hatcliffe 1, where there 
is frequent refuse collection. Refuse is supposed to be collected every 
Saturday in Glen View but they hardly come. This has led to residents 
throwing rubbish everywhere in the area, along the roads and on street 
Residents in most parts of Harare pay for their plumbing services if they 
experience blocked sewer pipes on their premises. This is despite that 
council plumbers are supposed to provide that service to the residents. — By 
Harare Residents Trust (HRT)

17 hours of load-shedding in Zim

17 hours of load-shedding in Zim

Eyewitness News |                         Today, 

JOHANNESBURG - Reports from Zimbabwe say Harare residents face a miserable 
weekend without water, power, and in some cases, beer too.

Some suburbs are now going for 17 hours without power per day, just as the 
cold weather is kicking in.The state-run ZESA power company recently 
introduced massive load-shedding.Employers are now allowed to dock money 
from their employees' salaries, to make up for non-productive hours.Water 
supply is erratic still, with Harare's eastern suburbs reported to be 
affected the worst.

And now, beer shortages have kicked in.  Street vendors are cashing in 
by buying all scarce stock available, so they can push up the price on the 
black market.

Winter Load Shedding Programme

Please click here to open this document

Mozambique Threatens Power Cuts To Zimbabwe

Mozambique Threatens Power Cuts To Zimbabwe

HARARE, May 16 (Bernama) -  Mozambique's Cabora Bassa Hydro Electricity 
Company is threatening to further reduce or suspend power exports to 
Zimbabwe over ZESA Holdings' huge debt, a senior government official said 

Zimbabwe Deputy Minister of Energy and Power Development, Hubert Nyanhongo 
told New Ziana news agency that Zesa Holdings owes the Mozambican utility 
US$80 million and is servicing its debt too slowly.

However, he said Zimbabwe is committed to repaying its debt in spite of 
financial challenges facing ZESA Holdings.

Cabora Bassa has in the past reduced power supplies to Zimbabwe over the 
huge debt.

ZESA imports power from neighbouring countries to bridge a shortfall in 
domestic generation and with the onset of the winter season, the country's 
power deficit has slightly increased as power demand rises.

Nyanhongo said in most cases, only three out of the six power generating 
units at Hwange were functional.

The power utility is currently seeking a partner to build two new generation 
units at Hwange.

Zimbabwe braces for daily 9-hour power outages amid winter weather

Zimbabwe braces for daily 9-hour power outages amid winter weather

By Associated Press, Published: May 13

HARARE, Zimbabwe — Zimbabwe’s state power company says it is implementing 
power cuts of at least nine hours a day as the winter season begins in the 
southern African nation.

The Zimbabwe Electricity Company says the outages, known as load shedding, 
will affect homes, businesses and industries across the nation. Only major 
hospitals and strategic facilities will be excluded.

In a statement Sunday, the company said during colder months it can only 
supply half the national demand for power. Demand peaks in winter.

It blamed breakdowns, aging equipment and financial problems that prevent 
them from importing power from the region.

In years of economic meltdown, Zimbabwe suffered regular poorly managed 
power outages of up to 20 hours a day while some areas escaped cuts because 
of inefficiency. The state weather office has forecast near freezing lows in 
coming weeks.

Continuing power shortages cripple Zimbabwe economy

Continuing power shortages cripple Zimbabwe economy


HARARE (Xinhua) -- Power outages have been on the increase of late and 
continue to cripple Zimbabwe ’s economy as the country’s debt-laden power 
utility fails to adequately supply electricity to industry, commerce and 

With the winter season fast approaching with its usual higher demand for 
power than the other seasons, ZESA Holdings’ position is far from being 

Apart from heating requirements by consumers to beat the cold, hundreds of 
farmers also need electricity to irrigate winter wheat and keep other 
operations on their farms running.

Agriculture, Mechanization and Irrigation Development Minister Joseph Made 
last week bemoaned the power shortages which he said would seriously affect 
the revival of the agricultural sector and downstream industries.

“Can you imagine a seed company using generators to dry seed and still 
expect to remain in business or sell the product at profitable prices?”

Made told The Herald that he was disappointed to note that some seed houses 
were actually using generators to dry the seed because of the power cuts.

ZESA now risks the danger of being accused of derailing the winter wheat 
season, even in cases where farmers fail to plant for other reasons.

Even though Made has expressed his disappointment over the power cuts, 
Finance Minister Tendai Biti has already said that the power deficit would 
persist for the foreseeable future - notwithstanding the on-going 
rehabilitation program at power stations.

While billions of U.S. dollars are required to fully refurbish and upgrade 
current power stations, the government only availed 40 million dollars for 
energy programs in 2011, with an average generation of 1,105 megawatts (MW) 
realized against an envisaged capacity of 1,600.

An increased output of 1,244 is now envisaged for 2012, compared to demand 
of 2,200 MW required to fire all the sectors of the economy.

Under the 2012 budget, Biti allocated nearly 55 million dollars towards the 
rehabilitation of Hwange and Kariba power stations and the transmission and 
distribution network.

An injection of 1 billion dollars for the construction of new generation 
plants at Hwange Thermal Power Station and another 400 million dollars to 
expand Kariba South (Hydro) will create an additional 900 MW and satisfy the 
country’s short term needs, but the government does not have such a huge 

Limited finances have also hampered the utility’s ability to import from 
neighboring utilities such as Mozambique ’s Hydroelectrica de Cahora Bassa, 
to which it is battling to clear an 80 million dollars debt.

At midday, the utility was producing a total of 1,087 MW with Hwange Thermal 
Power Station, which has a potential of 920 MW, producing 392 MW while 
Kariba hydro was producing 615 MW from a potential of about 740 MW.

The load shedding status was at the highest level of severe. The utility has 
five statuses—minimal, light, moderate, heavy and severe.

Zimbabwe recently signed a memorandum of understanding with Zambia to 
jointly construct the 4-billion-dollar 1,650 MW at Batoka Hydro-power 
project on the Zambezi River .

However, work on the project will only begin after Zimbabwe pays, or makes a 
strong commitment to pay off more than 70 million dollars it owes Zambia 
from the sale of the Central African Power Corporation assets which had been 
jointly owned by the two countries. The debt is supposed to be paid off in 
three years.

Generally, Zimbabwe has been engaged primarily in rehabilitating 
infrastructure as opposed to construction of new power stations.

More efficient use of power through the replacement of incandescent bulbs 
with energy savers, installation of pre-paid meters, among others, will also 
result in a saving of 300 MW which can be channeled to the productive 

The government has already removed duty on the importation of energy saving 
bulbs to promote their usage.

Why we’re stuck in the dark

Why we’re stuck in the dark

Don’t know about you but 16 hour long power cuts are starting to get me 
down. This update from the Zimbabwe Power Company helps to explain the 
current spate of bad power:

It is with regret that I advise of the fact that we (Zimbabwe Power 
Company) lost the four producing units at Hwange Power Station yesterday 
afternoon (Wednesday 25th April). One unit was brought back onto the grid 
last night and we hope to bring a second, larger unit, back around 4am 
tomorrow (Friday 26th April). Repair on the third unit is scheduled for 
completion such that it will be ‘returned to service’ on Saturday morning. 
Two phase one (smaller) units are having their rotors re-wired in South 
Africa – this is major work.

Kariba has five units on line with the sixth due back on the grid in 
mid-May after routine, but critical, maintenance ahead of winter.

The Hwange and Kariba expansion plans remain on program at this time. 
The tenders are out and close in June. this will be followed by 2 three 
month periods for tender review and finalisation of funding/award. 
Thereafter construction will take between three to four years (2016-17).

R. Maasdorp
Chairman ZPC

This entry was posted on April 27th, 2012 at 12:41 pm by Amanda Atwood

‘Huge Fault’ at Hwange Plant leaves Harare without power

‘Huge Fault’ at Hwange Plant leaves Harare without power

By Tererai Karimakwenda
27 April 2012

A technical fault is said to be the cause of a power cut that left Harare 
without power since very early Thursday morning. The state-owned Zimbabwe 
Electricity Supply Authority (ZESA) blamed a “huge fault” at the Hwange 
thermal power plant for the problem, which forced many businesses to stop 
operations and others to shut down.

ZESA is functioning with old equipment that has not been well maintained or 
properly serviced since independence in 1980. Mismanagement and corruption, 
which have destroyed other parastatals, are also contributing to the utility 
company’s ongoing crisis. Many areas of the country go without power 
regularly and power cuts have become a way of life.
ZESA is also owed millions of dollars by top government officials who have 
received power for years without making payments. SW Radio Africa reported 
earlier this month that the national power utility is under increasing 
pressure to switch off these officials, with the first family being among 
the worst offenders.

The Mugabe family reportedly owe ZESA more than US$300,000 as of December 
2011. Despite this, ZESA has been cutting off power for the ordinary 
citizens who are struggling to pay much less. Energy and Power Development 
Minister Elton Mangoma has said ZESA is owed more than $140 million by 

Human rights activist Tariro Manhendere told SW Radio Africa that although 
some parts of the capital got power back Friday afternoon, many others, like 
Kuwadzana and Dzivarasekwa, still had none. She said these areas experience 
power cuts more frequently and for longer periods than the Central Business 

Asked how bad this week has been in terms of power cuts, Manhendere said: 
“It’s quite this frustrating. You can’t plan anything, especially those that 
are in home industries who have no choice.”

The frustrated activist said vendors who sell products that need 
refrigeration, like meat, lose money when their products go bad but out of 
desperation sometimes still try to sell them.

More repairs to the aging equipment at Hwange Power Station were expected 
over the weekend and reports quoted ZESA spokesman Fullard Gwasira as 
saying: “Technicians and engineers are working flat out to fix the problem.

Zimbabwe's Power Outages to Worsen as Gov't Negotiates With Mozambique

Zimbabwe's Power Outages to Worsen as Gov't Negotiates With Mozambique

02 April 2012

ZESA is owed more that $550 million by customers and Mangoma said 
disconnections of defaulters over the next few days will help raise the 
money needed to reduce the debt with Mozambique

Jonga Kandemiiri | Washington

Zimbabwe's Energy Minister Elton Mangoma says the country's power utility, 
ZESA, needs to raise $40 million by the end of the month to reduce its $80 
million debt with Mozambique’s Hydro Cahora Bassa, which last month reduced 
power supplies to Harare citing non-payment.

Mangoma said intensified disconnections of defaulters would help raise the 
money. He said the country's power supply situation could worsen over the 
Easter break if ZESA fails to raise the funds by Friday.

The minister, who held meetings in Maputo last week with his Mozambican 
counterpart and the country's energy officials, told the VOA that Cahora 
Bassa wants Harare to pay at least $40 million dollars before it can up 
power supplies to Harare.

“They agreed to increase power supply once we have made our payment," said 
Mangoma. "They expecting us to bring our debt to below $40 million and they 
said that is when the power supply would be increased for us.”

“For us to have reduced load-shedding during the holidays, it all depends on 
whether we are able to mobilize the required resources by Friday," said the 

ZESA is owed more that $550 million by customers. Mangoma said 
disconnections of defaulters over the next few days will help raise the 
money needed to reduce the debt with Mozambique.

“What this means is more power disconnections for everyone,” he said.

“Although I cannot disclose the amount we have at the moment, we are also 
going to apply multiple methods to raise the money and Government also has 
to look for other alternatives like loans or where to borrow,” the minister 

Load-shedding could worsen: Mangoma

Load-shedding could worsen: Mangoma

01/04/2012 00:00:00
by Staff Reporter

POWER supply problems could worsen across the country over Easter unless the 
US$76 million debt owed to suppliers in Mozambique is significantly reduced, 
a cabinet minister has warned.

Energy Minister, Elton Mangoma said Zimbabwe needs to reduce its debt to 
under US$40 million by Friday to ensure the current power supply problems do 
not get worse.

“They (Mozambique) agreed to increase power supply once we have made our 
payment. They expecting us to bring our debt to below US$40 million and they 
said that is when the power supply would be increased for us,” Mangoma told 
the state-owned Herald newspaper.

“For us to have reduced load-shedding during the holidays, it all depends on 
whether we are able to mobilise the required resources by Friday.

“If that is not the case, it means the situation would remain the same and 
we will continue with the power outages until we set off what we owe.”

Mangoma said ZESA – which is owed more that US$550 million by customers --  
would step-up disconnections of defaulters over the next few days to help 
raise the money needed to reduce the debt with Mozambique.
“What this means is more power disconnections for everyone,” he said.

“Although I cannot disclose the amount we have at the moment, we are also 
going to apply multiple methods to raise the money and Government also has 
to look for other alternatives like loans or where to borrow.”

Zimbabwe generates 1,300MW of electricity which was way short of the daily 
national requirement of about 2,200 megawatts.
The country has plugged the gap with imports from regional suppliers but 
many have cut back supplies due to payment problems.

The shortages have forced ZESA to ration supplies to both commercial and 
domestic users with some areas going for more than 10 hours per day without 

Zimbabwe shortlists bids for enlarging power plants

Zimbabwe shortlists bids for enlarging power plants

Tue Mar 27, 2012 5:05pm GMT

JOHANNESBURG (Reuters) - Zimbabwe has short-listed eleven bidders for the 
expansion of its Hwange and Kariba South power plants, with a winner 
expected to be announced in the third quarter of this year, its energy 
minister said on Tuesday.

It has been battling power shortages due to growing demand and ageing 
plants, limiting supplies to industry and the key mining sector. Zimbabwe 
produces around 1,000 MW of electricity, compared with peak demand of 2,200 

The extension of the Hwange thermal power station will add 600 megawatts 
(MW) to the Zimbabwean national grid, while the extension of the Kariba 
South hydro plant will add 300 MW.

Elton Mangoma said companies from China, India, South Korea, Italy and 
Brazil were among the shortlisted and the firms have until the first week in 
June to submit a detailed proposal.

"I'm hoping that it will not take more than three months to adjudicate and 
thereafter award the tender. We are hoping that in the fourth quarter we can 
move on the projects," he told Reuters on the sidelines of an African power 
conference in Johannesburg.

Mangoma said additional units at the two plants will be operated in a 
public-partnership between the Zimbabwe government and whoever is chosen to 
build the plants.

The minister said Zimbabwe still owed around $85 million in unpaid power 
imports, mainly to neighbouring Mozambique.

Mangoma said he was meeting Mozambican officials on Thursday to address the 
issue, especially after Mozambique halved its exports to Zimbabwe to 50 MW 
due to the unpaid bills.

The minister said that together with neighbouring Zambia his country had in 
February decided to revive the Batoka Gorge hydroelectric power project, 
estimated to cost $2.5 billion, and expected to supply a total of 1,600 MW 
to the two countries.

The two neighbours will look for an independent power producer to construct 
the plant on a build-operate-transfer basis.

The 1,600 MW, which could later be upscaled to 2,000 MW, would be evenly 
split between the two countries, he said.

Mangoma said the project was in the preliminary stages and it would be too 
early to comment on time lines.

In the meantime, the minister hoped to convince utilities in the region to 
boost trade of electricity during off-peak times to alleviate the most 
pressing shortages.

Zesa scam divides government

Zesa scam divides government

By Xolisani Ncube, Staff Writer
Monday, 26 March 2012 11:59

HARARE - Sharp divisions have emerged in government over huge Zesa Holdings 
debts owed  by President Robert Mugabe and his allies in Zanu PF which they 
now say have been used by the MDC to prop its electoral chances in future 

A seething Mugabe and his colleagues in Zanu PF last week reportedly 
targeted Energy minister Elton Mangoma for “breaching confidentiality” 
clauses by “leaking” to the Daily News their ballooning Zesa bills which run 
into millions of dollars.

This followed a stinging expose by the Daily News which named Mugabe  and 
his officials among the top defaulters at a time when the majority of the 
poor Zimbabweans were living in darkness following massive disconnections by 
Zesa for not paying their bills.

Mugabe and several Zanu PF ministers last Tuesday reportedly confronted 
Mangoma over the Zesa bills demanding answers why their debts were published 
in the Daily News.

Mangoma however said he was unaware how the bills reached the Daily News. He 
told an investment conference in Harare last week that he respected client 

The Daily News was told yesterday that Mangoma now feels unsafe after the 
fierce confrontation while senior employees at Zesa are said to be  also 
living in fear over the published list of VIP defaulters.

The Zanu PF side of government’s anger was reflected on Saturday in the 
state media when a top government official writing under the pen name 
Nathaniel Manheru claimed that the Zesa  scandal was carefully designed by 
the MDC to create havoc in Zanu PF.

In a column headlined, Inventing a matching scandal, Manheru partly wrote: 
“Out of desperation, MDC-T today pushes its ministers, some of them 
previously arraigned before the courts for questionable conduct, pushes them 
hard to invent matching scandals to incriminate other players so the ugly 
spotlight is shared.

Its thrust is to democratise blame, so judgment is shared. It is a posture 
of a party convinced  about its own incorrigibility.

“Is it not incredible that a whole accountant is pushed to re-classify a 
well documented debt into a screaming scandal? And does so the same weeks 
his counterpart, Finance minister Biti, is publishing a debt settlement 
strategy for Zimbabwe?"

“Or is he about to name and shame Zimbabwe for the scandal of defaulting on 
its debts the same way Zesa clients have? Is owing in business a scandal 
mister accountant? Which business does not carry obligations?"

“Clearly here is a man sidestepping professional knowledge to serve a cause, 
in the process becoming quite stupid by standards of his profession. I 
suppose next week we will read about Sable Chemicals,
itself the biggest single user of power it cannot always pay for in time."

“More dramatically, Mangoma will name and shame Zesa for the scandal of not 
paying its Mozambican counterpart to the tune of well over US$40 million. 
The whole thing does not make sense at all.”

Nathaniel Manheru is also believed to be one of Mugabe’s top aides.

But a senior MDC official yesterday dismissed the notion that the Zesa 
scandal is being used for political mileage for their party.

“The issue here is simple. They must just simply pay their bills. They all 
confirm that they owe Zesa lots of money so what is the problem. Since 
independence, they were grabbing things for free and now the ball game has 
changed and they are crying,” he said.

The scandal also revealed multiple ownership of farms as most bills emanate 
from the grabbed properties.

The conspiracy to bleed state power firm Zesa by not paying bills running 
into millions ran through the President’s Office and state institutions to 
ministers, the military, MPs and Zanu PF district offices.

A few of Prime Minister Morgan Tsvangirai and Welshman Ncube’s people were 
also in the mix with smaller amounts. But the impunity was shocking.

Top ministers — some who claim to hold vast riches — and just about everyone 
and state institutions connected to the system amassed huge bills at a time 
when Zesa was enforcing a punishing load shedding schedule on the majority 
poor due to cash flow problems.

The First Family through their many farms owed Zesa nearly $345 000 as at 
December 31, 2011.

Manicaland governor Chris Mushowe led the pack with an astounding bill of 
$367 606, 07.

Didymus Mutasa, the minister of State in Mugabe’s office owed State 
parastatals a massive $179 590, 31, Saviour Kasukuwere, who as 
Indigenisation and Economic Empowerment minister is leading Mugabe’s 
campaign to “spread wealth to the people”, raked up $100 602,22 in unpaid 
Zesa bills as at December 31, 2011.

Sydney Sekeramayi, Marondera-Wedza Zanu PF Senator, who is also State 
Security minister and a long time Mugabe loyalist, owed $108 296.

The Daily News yesterday could not get in touch with Mugabe’s spokesperson 
George Charamba or Agriculture minister Joseph Made, who acts as the 
President’s farm manager to check if the First Family had managed to settle 
their bills.

However, sources at Zesa said a number of VIPs named in the scandal were 
last week making inquiries on their bills with some making payment plans to 
clear their debts.

Zesa on the other hand owes Hydro Cahora Bassa (HCB) $80 million accrued 
from imported power from the Mozambique power company and this has resulted 
in HCB reducing its supply to Zimbabwe demanding payment.

Mangoma told the Daily News yesterday that he will be travelling to 
Mozambique this week to try and negotiate for an  increase of power exported 
to Zimbabwe by HCB.

“I will be travelling to Mozambique this Thursday to negotiate with 
authorities from that country so that we can have an increase in supply,” 
said Mangoma.

Energy Minister Promises Improvement Soon in Delivery

Energy Minister Promises Improvement Soon in Delivery

23 March 2012

Energy Minister Elton Mangoma said power utility, ZESA, will soon ease load 
shedding after successfully upgrading generation capacity at Hwange and 
Kariba power stations.

Violet Gonda | Washington

Energy Minister Elton Mangoma said load shedding will ease across the 
country in the next few days after the Zimbabwe Electricity Supply Authority 
upgraded generation capacity at Hwange and Kariba power stations.

The minister, who was speaking Thursdays at an investment conference in 
Harare, also said plans are underway to disconnect defaulters who owe the 
power utility a total of $550 million in unpaid bills, money that can help 
ZESA settle huge debts owed to neighbouring countries for electricity 

Meanwhile, legislators traded insults in parliament Thursday following 
recommendations by Heya Shoko from the Tsvangirai-led MDC that defaulting 
lawmakers be barred from parliament.

There was an uproar when the Bikita West lawmaker went on to name and shame 
the major defaulters who he described as “ZANU PF MPS land grabbers”, such 
as  Chivi Central MP Munyaradzi Paul Mangwana  and Manicaland provincial 
governor Christopher Mushohwe who allegedly owe ZESA $74 000 and $367 000 

Director Precious Shumba of the Harare Residents Trust said poor management 
of public resources across the political divide, and a culture of impunity 
is contributing to the weakening of state institutions.

“It also exposes the failure of the debt collection system in ZESA Holding.” 
Shumba asked: “How could they allow such a situation to prevail where a 
consumer who is using electricity for free goes unchecked for such a long 
time, and wait for this outcry?”

Shumba said state establishments have to be strengthened as many officials 
fear victimization and abuse of power by senior civil servants, “but we have 
very weak institutions where people are only safeguarded because of who they 
know or which political party they belong to. That is the tragedy.”

Outrage over hefty allowances for ZESA executives

Outrage over hefty allowances for ZESA executives

By Tichaona Sibanda
26 March 2012

The director of the Harare Residents Trust (HRT) has condemned the recent 
hefty allowances awarded to ZESA executives, saying the pay deal is an 
insult to the hard-pressed consumers who have to deal with daily power cuts.

The top hierarchy at the utility power company has increased their 
allowances by up to 75 percent, backdated to 2009, according to the 
Financial Gazette.

However the weekly paper said allowances for non-managerial staff have been 
slashed by 35 percent. Precious Shumba the director of HRT told SW Radio 
Africa on Monday that this is the reason why his organization has repeatedly 
criticized ZESA holdings for poor management and incompetence.

‘Our criticism has been without malice. It has been informed by the 
situation on the ground. ZESA has been able to mobilize resources to 
rehabilitate the electricity distribution network. They also had the 
capacity to reform the billing system, but the challenge they face is what 
to prioritize with the money they have,’ Shumba said.

He added: ‘They are now more focused on personal interests rather than 
institutional interests. The economic revival of Zimbabwe is based on ZESA’s 
ability to generate enough power to meet the demand of various stakeholders, 
including industries.’

The country produces about 1320 megawatts of electricity and requires 2100 
megawatts. The balance is imported from Mozambique, Zambia and the DRC. 
Until March last year South Africa’s Eskom supplied 400 megawatts.
ZESA’s development manager, Ikhupuleng Dube, revealed that the country will 
continue to have serious load shedding and power outages until 2014.

The power company is struggling to raise the US$125 million needed to repair 
the outdated Hwange Power Station generators, with US$8 billion needed for 
the country, to restore optimum power production levels.

There has been growing outrage in the country following the disclosure of 
the names of top government officials who have defaulted on their power 
bills. The Daily News has named and shamed several cabinet ministers and 
Robert Mugabe and his wife.

The outstanding payments by several top government officials, is believed to 
be over $500 million. Mugabe and his wife Grace owe ZESA over US$300,000 as 
of December 2011.

Heads to roll at ZESA

Heads to roll at ZESA

Friday, 23 March 2012 13:39

EXECUTIVES at ZESA Holdings have awarded themselves hefty increases in their 
allowances of up to 75 percent, backdated to 2009, at a time the loss-making 
power utility has intensified both its revenue collection and load shedding, 
The Financial Gazette can exclusively reveal.
Ironically, allowances for non-managerial staff have been slashed by 35 
percent to contain the ballooning overheads in spite of recommendations for 
a 70 percent upward adjustment of the same by the National Employment 
Council for the energy industry.
Pressure has now been brought to bear on the ZESA board and management by 
unions and State bureaucrats to explain the inflationary adjustments that 
are way out of step with the prevailing pricing trends.
Inflation, dubbed Zimbabwe’s Number One enemy, receded in January to 4,3 
percent from 4,9 percent in December. The hefty salary increases are 
therefore seen not only widening the disparities between salaries for 
managerial and non-managerial staff but angering ZESA custo-mers who are 
unhappy with the high electricity tariffs.
Business has been passing on the extra cost to the consumer in the form of 
higher prices, worsening the inflation outlook. Impeccable sources at ZESA 
said heads were likely to roll, starting at board level upon the expiry of 
the office tenures of certain of its members.
Adding to the pressure is the suspicion within the corridors of power that 
there could be a hidden political agenda behind an expose` naming and 
shaming top government officials owing the power monopoly huge sums of 
The leaks came as a huge embarrassment to several government officials, who 
are fuming over what they perceive to be a flagrant breach of client 
confidentiality and the parastatal’s shambolic billing.
The anger has been directed at top ZESA officials who could pay dearly for 
their perceived transgressions by losing their jobs.
ZANU-PF officials suspect that the matter was being handled in a partisan 
manner given that the energy portfolio is presided over by a Movement for 
Democratic Change appointee. They also fear that the shenanigans at the 
power utility could spark public protests at a time the country is eyeing 
fresh elections to bring closure to the shaky government of national unity.
It however, emerged this week that the leaks were masterminded by 
non-managerial employees disgruntled by the reduction in their allowances 
and the fact that their bosses had denied them salary increases.
The Zimbabwe Energy Workers’ Union (ZEEWU) this week said ZESA managers were 
bleeding the parastatal, owed in excess of US$450 million by both domestic 
and commercial consumers.
Representatives of ZEEWU, made up of ZESA affiliates — the Zimbabwe National 
Water Authority (ZINWA), Green Fuel and the Rural Electrification Agency 
(REA) — were yesterday locked in meetings with management at ZESA as it 
emerged workers at the power company were increasingly getting agitated.
This week, ZEEWU told Parliament that government chefs’ failure to settle 
electricity bills was a contributory factor to the poor salaries employees 
were getting. It alleged that their respective companies — ZESA, ZINWA and 
REA — were failing to pay them due to the huge amounts the utilities are 
“The bad debtors who are not paying their utility bills are the big gurus, 
and we feel if they were to pay the outstanding amounts our companies would 
be able to pay us,” union president, Angeline Chitambo     told the 
Parliamentary Portfolio Committee on Public Service and Labour.
Energy and Power Development Minister, Elton Mangoma, confirmed this week 
that the terms of office for some board members would be coming to an end in 
June, but refused to divulge whether or not he would renew their terms.
“Any changes would have nothing to do with mounting pressure regarding the 
issue of debts but some board members’ terms of office are coming to an end 
around June,” he said.
But Minister Mangoma, who yesterday denied he was under pressure to fire top 
managers, said as far as he was concerned there were no new awards at ZESA 
as alleged by non-managerial staff.
“I have not seen or approved any increase. Any increase on salaries or 
benefits has to be approved by the minister,” he said.
Mangoma, however, revealed that an investigation was underway to fish-out 
the source of the leak to the media regarding individual debtors.
“That issue is very unfortunate. Obviously we are looking into it. We are 
investigating to find out who leaked the list to the media,” he said.
Fullard Gwasirai, the ZESA spokespeson, also denied there was a 75 increment 
on the allowances of top executives, saying employees were misrepresenting 
“There is nothing like that (that executives awarded themselves increments). 
As for non-managerial staff, you know that people will always want more 
money. Generally people are not always happy with their salaries,” said 
Economist, Willia Bonyongwe said while citizens should pay for services 
rendered by the power company, ZESA tariffs were above normal.
ZESA is one of the utilities that has had the most rapid tariff increases 
after the country adopted multiple currencies in 2009.
Cumulatively, these tariff increases are close to 100 percent, justifying 
calls for their review given the liquidity challenges on the market and the 
low profit margins business is getting.
“As for agriculture, there are limited credit facilities on the market and 
farmers have to wait for a long time to get paid. Agriculture has always had 
a tariff of its own, which was abolished last year. That is when bills shot 
up. When you look at margins in agriculture, you cannot produce food under 
these tariffs”, said Bonyongwe.
“Under the Short Term Emergency Recovery Programme, there was a proposed 
discount of 20 percent on commercial rates, which would benefit farmers and 
this was not implemented because the fiscus has no capacity for that 
subsidy. A proposal to forgo value added tax (on the electricity bill) and 
the rural electrification levy was then proposed to enable government to 
effect this subsidy but again that recommendation was not followed through. 
It is important to support local agriculture because depending on imports 
and donors is not sustainable,” she       added.
Power outages intensified countrywide this week with most of the businesses 
and government offices running on generators.
There is also anger that ZESA has mainly been switching off ordinary 
citizens, sparring so-called sensitive or classified government bureaucrats 
some of whom owe between US$150 000 and US$350 000.
Industry, which is currently struggling to rump-up production, has also 
taken the power utility to court over what it believes are unjustified 
tariff increases.
Last August, the Competition and Tariff Commission ordered ZESA to write off 
all pre-2009 bills and justify some load-shedding programmes as well as to 
bill their clients on actual meter readings.
The power utility has since appealed the order at the Administrative Court.

ZESA to ease load-shedding: Mangoma

ZESA to ease load-shedding: Mangoma

22/03/2012 00:00:00
by Phyllis Mbanje

POWER supplies are expected to increase across the country over the next few 
days after ZESA completed upgrades to the Hwange and Kariba power stations, 
Energy Minister, Elton Mangoma has said.

Zimbabweans have experienced increased power supply interruptions over the 
past two weeks with some areas going for more than 19 hours without 

The poorer high density suburbs were the hardest-hit with some going for two 
days without power.

However, speaking at an investment conference in Harare Thursday Mangoma 
said the situation should improve after generation capacity at Hwange and 
Kariba power stations was increased by 4 and 6 units respectively.
Mangoma also said the ministry would soon launch a major expansion project 
at Hwange.

“Exciting things are happening there and by the first week of June proposals 
for contracts will have been submitted and an evaluation will follow 
thereafter,” he said.

Zimbabwe does not generate enough electricity to meet its needs and plugs 
the gap with imports from neighbouring countries which are, however, 
reducing supplies due to non-payment.

“What are getting from Mozambique is not good enough and we feel that some 
people are going behind our backs trying to influence them not to deal with 
us but we are neighbors,” Mangoma said.

“Our huge challenge then is servicing that debt and hence it is important 
for consumers to own up and pay their bills. We are not backing down from 
disconnecting defaulters after all there is $550million of unpaid bills.”

A privately-owned daily recently published a list of 41 senior government 
officials including cabinet ministers who allegedly owe the power utility 
hundreds of thousands of dollars.

Mangoma – who has previously conceded that senior government officials were 
among ZESA’s major defaulters -- described the “leak” as regrettable but 
said more needed to be done to encourage people to pay their bills.

“Zimbabweans have just developed a culture of not wanting to pay. It’s like 
they are saying I can get away with not paying,” he said.
“If you are not paying and do not have a payment plan then you are not a 
serious economic player.”

Mugabe attacks Mangoma over leak of ZESA bills

Mugabe attacks Mangoma over leak of ZESA bills

By Lance Guma
23 March 2012

Robert Mugabe and his ZANU PF ministers on Tuesday used a cabinet meeting to 
launch an attack on Energy Minister Elton Mangoma, blaming him for leaking 
details of their huge unpaid electricity bills.

Last week the Daily News exposed how Mugabe and his wife Grace owe power 
utility ZESA over US$345,000 in unpaid electricity bills, incurred at their 
multiple farms. Also exposed, with more than US$300,000 in outstanding 
bills, were Manicaland Governor Chris Mushowe and CIO boss Happyton 

A report in the Zimbabwe Independent says Youth and Empowerment Minister 
Saviour Kasukuwere, who owes ZESA US$100,602, used ‘strong language’ in 
accusing Mangoma of leaking the ‘confidential information’ about the bills 
“to embarrass Mugabe and ZANU PF ministers, while scoring political points. 
Mangoma recently announced the launch of a crackdown on so-called ‘VIP 
defaulters’ but denied leaking the bills to the press.

It’s reported Mangoma was outnumbered during the meeting as Prime Minister 
Morgan Tsvangirai, his deputies Thokozani Khupe and Arthur Mutambara, were 
not present.

A detailed breakdown of how much Mugabe and his wife Grace owe ZESA was 
provided by the paper.

“Four plots at Foyle Farm plus a cottage as well as Gushungo Dairy stood at 
US$143 667 while Gwebi Woodlot 1st Farm owed US$24 901. Sigaro Farm 1st PO, 
2nd PO, 3rd PO and 4th PO owed a total of US$78 218.”

“The First Lady Grace Mugabe’s Iron Mask Cottage, Iron Mask 2nd POIN, Iron 
Mask 3rd POIN, Mazowe Wholesalers, Annant Cottage, Iron Mask Farm 5th, 6th, 
7th and 8th owed a total of US$98 306 as at December 31 2011.”

Also owing the state owned power utility is Defence Minister Emmerson 
Mnangagwa (US$240,824), Transport and Communications Minister Nicholas Goche 
(US$158,245) “for his plots at Ceres Farm and businesses, which include 
grinding mills, a farm store and a service station.”

Presidential Affairs Minister Didymus Mutasa owes US$179,590, Air force 
chief Perence Shiri US$26,947 for his Hopdale Farm, while police boss 
Augustine Chihuri’s owes US$106,778 for his homestead and his Inyika farm.

Speaking to SW Radio Africa political commentator Phillip Pasirayi said the 
attitude of the senior government and military chiefs to the leaking of the 
bills showed how they are completely unused to any form of accountability.

Instead of owning up or paying the bills they were “taking everyone for 
granted” and acting like Zimbabweans owe them something.

Also in the news for a similar reason was central bank Governor Gideon Gono, 
who owes the state owned NetOne mobile network US$800,000 in unpaid phone 
bills stretching over two years. According to the South African Sunday Times 
newspaper, NetOne has now dragged Gono to court demanding payment.

Mugabe fumes over Zesa bill

Mugabe fumes over Zesa bill

Friday, 23 March 2012 10:07

Owen Gagare

ENERGY and Power Development minister Elton Mangoma (pictured) came under 
fire from President Robert Mugabe and Zanu PF cabinet ministers at a 
high-level meeting on Tuesday in which leaked Zimbabwe Electricity Supply 
Authority (Zesa) bills, including disclosures that the First Family owed the 
power utility more than US$345 000 in unpaid power bills, featured 

Several ministers, senior civil servants as well as service chiefs were 
named among people who have not been paying their electricity bills 
resulting in Zesa failing to settle its debts and ensure adequate power 
supplies. This has caused  severe load-shedding, particularly in the 
high-density areas.
While defaulting VIPs were not switched off, poor people, whose bills are 
comparatively small, always live in darkness or without electricity for 
domestic use.

Official sources say the Zesa bills issue came up for discussion at the 
charged meeting, chaired by Mugabe, after Indigenisation minister Saviour 
Kasukuwere accused Mangoma of leaking the “confidential information” about 
the bills to embarrass Mugabe and Zanu PF ministers, while scoring political 
points. Mangoma angrily denied the allegations.

Sources said after Kasukuwere’s outburst, Industry and Commerce minister 
Welshman Ncube chipped in to rescue Mangoma who was under siege, saying the 
Indigenisation minister’s language was improper, although the issue he 
raised was legitimate. Ncube, sources said, indicated it was unprofessional 
for bills to be leaked because they were meant to be a private issue between 
Zesa and its clients.

A number of ministers felt the relationship between a client and Zesa should 
be similar to that of a client/lawyer, client/banker or patient/doctor 
relationship where confidentiality was paramount.

After Mangoma was attacked by Kasukuwere who accused him of leaking the Zesa 
bills and Ncube had protested the strong language, Mugabe joined the fray to 
renew assaults on the MDC-T minister. Kasukuwere is also one of the VIPs not 
paying their bills.

“The president (Mugabe) stepped in and said it did not matter who leaked the 
information because the buck stopped with Mangoma since Zesa is under his 
ministry,” said a source. “He charged and demanded that Mangoma must accept 

While holding his line insisting he was not personally responsible for 
leaking of the information, an angry Mangoma was said to have accepted 
responsibility and promised to issue a statement assuring the public of 
confidentiality on their bills.

However, other Zanu PF ministers, who apparently wanted to defend and 
impress Mugabe, refused to let Mangoma get away with it. They attacked him 
around, fuelling a heated and long debate on the controversial unpaid bills.

Mines minister Obert Mpofu was said to have insisted Mangoma had leaked the 
information given that he had promised to “name and shame” bigwigs who were 
not paying their electricity bills. Mangoma had previously raised the issue 
in cabinet and in parliament but he maintained on Tuesday that he was not 
behind the leaks.

Mangoma told the Parliamentary Portfolio Committee on Mines and Energy last 
month that some government ministers and senior civil servants had not paid 
their power bills since adoption of the multi-currency system in 2009.

He has been on a crusade to urge defaulters to pay their electricity bills 
to enable Zesa to settle a US$80 million debt owed to Hydro Cahora Bassa of 

Zesa is owed in excess of US$450 million by defaulting consumers. Mangoma 
warned last month that his ministry had taken a position to switch off all 
defaulters “without fear or favour”.

Mangoma was left exposed at the Tuesday meeting since his party boss and 
Prime Minister Morgan Tsvangirai did not attend the meeting as he is out of 
the country. Deputy Prime Ministers Arthur Mutambara and Thokozani Khupe, 
who could have also rescued him, were also not at the meeting while MDC-T 
secretary-general and Finance minister Tendai Biti did not intervene.

This gave the Zanu PF camp, led by Mugabe, a free rein to attack Mangoma.

Mangoma confirmed to the Independent yesterday the issue was discussed on 
Tuesday. He said he accepted that it was wrong for people’s debts to be 
leaked, saying he had clearly stated this position to Mugabe and his fellow 

“My belief is whatever is owed is private and should not be for public 
consumption and therefore as the minister responsible I can only apologise 
to those whose accounts were made public. I stated that position and it’s 
the same position I’m stating now,” said Mangoma.

He however insisted he did not leak the bills and charged it was 
“mischievous” for anyone to think he had done so.

The leaked Zesa bills allegedly showed that as at December 31 2011, Mugabe’s 
family owed more than US$345 000 to the power utility.

The electricity bill for the first family’s four plots at Foyle Farm plus a 
cottage as well as Gushungo Dairy stood at US$143 667 while Gwebi Woodlot 
1st Farm owed US$24 901. Sigaro Farm 1st PO, 2nd PO, 3rd PO and 4th PO owed 
a total of US$78 218.

The First Lady Grace Mugabe’s Iron Mask Cottage, Iron Mask 2nd POIN, Iron 
Mask 3rd POIN, Mazowe Wholesalers, Annant Cottage, Iron Mask Farm 5th, 6th, 
7th and 8th owed a total of US$98 306 as at December 31 2011.

Defence minister Emmerson Mnangagwa reportedly owed US$240 824 while the 
Transport and Communications minister Nicholas Goche owed US$158 245 for his 
plots at Ceres Farm and businesses, which include grinding mills, a farm 
store and a service station.

Presidential Affairs minister Didymus Mutasa owed US$179 590 and Central 
Intelligence Organisation Director-General Happyton Bonyongwe owed US$350 
989 although he has made significant moves to clear his debt.

Air force chief Perence Shiri owed US$26 947 for his Hopdale Farm while 
police boss Augustine Chihuri’s homestead and his Inyika Farm owed US$106 

Kasukuwere, who was breathing fire on Tuesday, owes Zesa US$100 602.

Defaulting Cabinet Ministers Negotiate to Settle Huge Electricity Bills

Defaulting Cabinet Ministers Negotiate to Settle Huge Electricity Bills

21 March 2012

ZESA spokesman, Fullard Gwasira told VOA's Blessing Zulu the power utility 
is happy that government officials and other customers have started settling 
their bills while some are still negotiating payment plans

Blessing Zulu | Washington

Senior Zimbabwean officials, among them President Robert Mugabe and many new 
black commercial farmers, have opened talks with the country's power 
utility, the Zimbabwe Electricity Supply Authority, to see how they can 
settle their bills, going into hundreds of thousands of dollars.

Private media have since the weekend been publishing the names of defaulting 
senior government officials following a decision by Mozambique's power 
utility, Hydro Cahora Bassa to cut electricity exports to Zimbabwe.

Their exposure has, however, raised tensions in the rickety government of 
national unity.

ZESA sources told the VOA that the majority of the ministers have been told 
to pay 25% of what they owe and settle their bills within six months or risk 
being switched off completely.

Most cabinet ministers say they want to sell their produce first before 
settling their huge bills.

President Mugabe and vice president John Nkomo lead the list of defaulters. 
Other senior government officials owing between $50,000 and $350,000 include 
Defense Minister Emmerson Mnangagwa, Minister of State in the President’s 
Office Didymus Mutasa, State Security Minister Sydney Sekeramayi, 
Information Minister Webster Shamu, Indigenisation Minister Saviour 
Kasukuwere and  Higher Education Minister Stan Mudenge.

ZESA is struggling to offset a debt of $800 million dollars that includes a 
$75 million owed to Hydro Cahora Bassa.

Energy Minister Elton Mangoma says he is headed to Mozambique next week for 
negotiations with Hydro since it reduced exports to Zimbabwe from 200 to 50 
megawatts only over non payment of its electricity bill.

The Mozambican power utility maintains. though, that it never switched off 

ZESA spokesman, Fullard Gwasira told VOA's Blessing Zulu the power utility 
is happy that government officials and other customers have started settling 
their bills while some are still negotiating payment plans.

Analyst Gladys Hlatyawayo says ZANU-PF ministers must pay up and not try to 
politicize the issue.

Prime Minister Morgan Tsvangirai told lawmakers last week that he had 
settled his $5,000 bill with ZESA, urging colleagues within both the MDC and 
ZANU-PF to do the same.

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