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TOPIC: Electricity Levy Proposal

Original Post:
Lincoln
13 December 2009 06:17.03
We are sitting on a time bomb as regards to electricity in Zimbabwe. No meaningful investment can be done without proper electricity generation capacity. At the moment we are creating a great desert with the way trees are being used as fire wood. Its a cost we will pay dearly in future if no corrective action are taken.We are currently a net importer of electricity in the region. If you analyse the electricity demand of the region and the world at large, its increasing every day. Very soon the country we are importing from will stop exports of electricity as they will need to sustain there own shortages. In future we might therefore fail to get enough electricity from imports. Zimbabwe is blessed with good sites for hydro electric generation that requires massive funds to exploit such as Batoko Gorge, Tokwe Mukosi, Rusitu  and Nyanga Mini Hydro stations etc. The good part of Hydro electricity is that its classified as green energy and we can get concessionary funding for them. We can also look into expanding our existing themal power stations although there are not environmental friendly.  
I therefore propose an electricity levy on all companies and all employees to pool resources together so that we expand our electricity generation capacity. Once there is significant cash flow from the levy funds we can look for funding from institutions such as ADB and guarantee repayments from the levies. 

There will be no meaningful development without electricity. Industries, farming, mining etc all depend on reliable electricity. It might be painful now but the future will be good. If all our electricity generation capacities are exploited soonest we can in the future export electricity and earn much needed foreign currency.
Current Replies / Comments:
Paul
17 May 2010 02:47.02

Another way of impoverishing the already impovershed Zimbabweans. How many Levies are we going to end up with? First and foremost it is not money or the lack of it that causes Zesa to underperfom. We have got very good university graduates trained to engineer but just sit in the offices at Zesa instead of coming up with clones of all the equipments that they use to generate power. The boilers, turbines, control systems are all made from materials that we have in abundance including tha fuel. Zesa should among other companies allow their stuff to come up with alternatives. China is notorious for fake stuff because they are innovative, in the end they better their products(if they do) and cement that foundation that started off as the unpopular process of illegal clones. 

In another forum perhaps, l can come up with a myriad of ways for Zesa to save itself and generate more Electricity in an even cheaper way.

Rugare
24 February 2010 04:37.57

This is a good idea. The problem will be convincing people that the money will not end up in 4X4s. God rid us of this excitement with cars. I believe if we have to forgo certain things we should to achieve that. Yet a better proposal is to respect property rights and it would be easy to go the PPP (Public Private Partnership) route for electricity and guarantee the investment through payments for electricity.

We could do this for electricity, roads, rail, water and waste management and open up ruthless competition for phones and data service providers. I think the capital is there if people can see their investment bringing them money without half of it being taken by someone. Until the issue of property rights is resolved even Zim business people will not invest in the utilities and as it appears a breakdown at Kariba today will plunge the country into complete darkness. The electricity and utilities debate to me is so critical in Zimbabwe it should be at the centre of what we talk about.

 

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