Harare – The prevailing power challenges in Zimbabwe are a result of an 83 percent decrease in electricity imports, research firm Equity Axis has established.
This is contrary to the state’s power utility company, Zimbabwe Electricity Supply Authority (ZESA)’s assertion that the ongoing power cuts are a result of low dam levels at Kariba dam.
Using the latest trade data released by the Zimbabwe National Statistics Agency (ZIMSTAT), Equity Axis noted that before austerity measures introduced by the Finance Mininister Professor Mthuli Ncube in October 2018, the country used to spend an monthly average of $17.6 million on electricity imports in 2018 and an average of $16.2 million in 2017.
“However, this monthly average expenditure on electricity imports has drastically decreased to a nearly $3.0 million dollars per month which is the lowest since dollarisation in 2009,” Equity Axis said.
"Data shows, power cuts a result of govt's austerity policy measures" Equity Axis analysts. Watch @ProfJNMoyo @steve_hanke @MthuliNcube @daddyhope @brains_muchemwa @BitiTendai @fortunechasi @nickmangwana @Wamagaisa @advocatemahere @matigary @kmugova @BrezhMalaba @TrevorNcube pic.twitter.com/RHnGTrLDAF
— Equity Live (@EquityLive) May 24, 2019
Various productive sectors including the mining industry, agriculture, hospitality sector and even small scale businesses have since expressed concerns over the negative impact they have had to deal with resulting from the power cuts.
According to a recent article published by the Newsday, Hospitality Association of Zimbabwe (HAZ) president Innocent Manyera said the costs of doing business has been exacerbated as a result of the rolling power cuts and has reduced Zimbabwe’s competitiveness in the region.
Meanwhile, the newly appointed Minister of Energy and Power Development Fortune said the government remains committed to solving fuel and electricity shortages through engaging the central bank on long-term financial mechanisms.
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Raynold Mhotseka is a Journalism and Media Studies student at the University of Zimbabwe. He serves as a news writer at financial research firm, Equity Axis where he is currently on attachment.