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Harare scrambles to clear debt arrears

Publish date: 20 January 2020
Issue Number: 856
Diary: IBA Legalbrief Africa
Category: Economy

Zimbabwe’s state electricity utility is in talks with the African Export–Import Bank (Afreximbank) to help clear US$70m of arrears it owes to power producers in SA and Mozambique. Zimbabwe Electricity Supply Authority (Zesa) Holdings needs to repay the debt to avoid having supplies shut off. Business Day reports that the country relies on imports because dilapidated plants and a drought-induced hydropower shortage have left it unable to produce enough energy to meet requirements. The company owes money to Mozambique’s Electricidade de Mocambique and Hidroelectrica de Cahora Bassa. Even with imports of power from SA and Mozambique, Zesa can only provide electricity for six hours a day.

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