Zimpapers Logo

A number of investors have responded to the “Zimbabwe is open for business mantra” and we want to implore Government to continue working on improving the investment climate. 

Zimbabwe should claim its share of investors in the region and beyond. It is crucial for Government to address the issue of load shedding which is adversely affecting production. 

It is pleasing to note that Zesa with support of the Reserve Bank of Zimbabwe is working flat out to reduce its debt to the South African power company, Eskom. According to the story carried by our sister paper Sunday News, Zesa which recently paid US$10 million to Eskom, has paid an additional US$890 000. 

Zesa Holdings acting group chief executive officer Engineer Patrick Chivaura said RBZ released the latest payment to Eskom last Monday. 

Eng Chivaura said Eskom has set certain conditions for the country to start getting power and Zesa has since met all of them. 

He said Zesa expects to have provided a bank guarantee by tomorrow and after that expects Eskom to resume power supplies to the country. 

Investors want to be guaranteed among other conditions adequate power supply and water hence the need for Government to mobilise adequate resources to import electricity not just from Eskom but other regional suppliers like Hydro Cahora Bassa in Mozambique. 

The long term solution is not to just rely on electricity from Kariba and Hwange but to invest in solar energy. Zimbabwe is this year facing a huge power deficit because of low water levels at Kariba Dam which drastically reduced power generation.

 Zimbabwe has attracted very big international companies especially in the mining sector.

 Recently Government signed a joint venture with the world’s top diamond producer by volumes, Alrosa Overseas. S.A. of Russia for the exploration, extraction and marketing of the country’s diamonds.  

The joint venture is expected to transform the country’s diamond sector. 

A lot of ground has been covered towards the establishment of Karo Resources’ $4,2 billion platinum mine in Mhondoro-Ngezi.  

The process is in its first phase of exploration and the company has so far completed aeromagnetic survey, digital terrain mapping and the drilling to quantify the platinum resources. 

Government has also signed an investment deal worth more than $5 billion with a Chinese steel manufacturing giant, Tsingshan, for the setting up of a new steel plant in Mvuma. 

The deal is set to create 30 000 jobs while that of Karo Resources will create 25 000 jobs. 

The mining sector is definitely poised for tremendous growth and the challenge is to ensure there is adequate electricity so that there is uninterrupted production in the mining and other sectors of the economy. 

It is therefore important for Zesa to promptly pay for imported electricity so that there is uninterrupted supply.