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ZESA gets a US$110 mil loan to improve tariff collection

ZESA meter, loan, tariff

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC), a subsidiary of ZESA Holdings, was the beneficiary of a US$110.4 million loan from Afreximbank. The loan which was the largest part of a total allocation of US$188,600,000 to three other local companies (CABS, CBZ and ZB Bank) was confirmed at the Intra-African Trade Fair that happened in Durban this week.

The funds that ZESA secured will be aimed at improving revenue collection through more prepaid meters.

“The funds will help ZETDC to improve revenue collection through smart meters and prepaid meters and thus pay off regional creditors’ accounts,”

Afreximbank (via newZWire)

ZESA has, over the years, struggled to get money out of postpaid clients who are absconding their obligation. In 2019 the power utility was owed around ZWL$1.2 billion by various stakeholders which forced the company to, over the years, ramp up efforts to spread prepaid meters across the country.

And at this point, you’d be quite right to ask if any of that money will be used to improve the ageing electricity infrastructure in Zimbabwe. Well, according to a report by newsWire, Afreximbank Executive Vice President Denys Denya said that part of the credit facility would be put to the task of rehabilitating the ZESA plant in Mutare.

That being said, putting revenue collection on par with the rehabilitation of infrastructure makes sense because ZESA will at the very least be able to recoup money from more of its clients. This will mean that the power utility will be able to better settle the over US$100 million it owes its sister power companies in the region.

It will be interesting to see how this all pans out when the funds from ZESA’s Afreximbank loan are put to purpose.

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19 thoughts on “ZESA gets a US$110 mil loan to improve tariff collection

  1. Worse still politicians and the other politically connected individuals do not have prepaid meters installed at their homes or businesses so they are the ones owing the power utility much money. Let’s investigate this.

  2. What doesn’t make sense is that the consumer pays the marked-up cost of the prepaid meter, in USD on top of that, why then do you need to borrow money to buy meters, when essentially it should be managed as a revolving fund? Why are we also not producing these locally?

    Additionally, they should make all post-paid accounts USD and they will all be clamouring for all prepaid meters.

    1. I’m now almost completely off-grid! Can’t be bothered with zesa’s bs anymore! It won’t be long before the latest zwd, or whatever they’re calling it now, will be worthless anyway! Zesa don’t seem to be able to provide pre-paid at the moment either, and even if they could, I doubt it will improve supply! My solar setup is doing fine at the moment, and was a very worthwhile investment! The people who’ve bought my house were super-chuffed to find a borehole and solar. I won’t concern myself with zesa’s problems at all, in 37 days time either! I’ll be finally shot of all zesa and water problems, along with all the other ones plaguing Zimbabwe, in 23 days time!

  3. Large companies, who consume the bulk of the power, are exempted from meter installation. Whence, those companies are paying much less.

  4. Ayas🙄, beating around the bush as usual. I just spent the entire day without electricity 😂🔌. We all know who consumes the most watts and how they are put on a pedestal.

    I may sound like a broken record ☺️ asi iyo ndiyo yazodyiwa manje lol. Mutare plant🤣🤚.

  5. Mukoma Valentine I think murikuita muchirasika pfungwa mbichana…nyaya dzamunongonyora hadzinei netechnology and vele you write stupid articles 🤪🤪🤪

      1. Im a staunch believer of criticism only if it’s constructive. @Garikai, only take criticism when it’s given in a compassionate way and prudently

        1. Are you not familiar with DCEU’s villain? Techzim transitioned way back. There is no need to be rude when criticizing someone. Construction bro. We all humans… we got emotions, feelings you know

          1. No-one is being rude!!! I’m asking about this: About Techzim
            Techzim is an information technology and business publication that obsesses about the opportunity of tech particularly the internet for individuals and businesses in Zimbabwe and the greater African region.

            We publish news, analysis and opinion on tech and related contextual issues with a focus on breaking it down for the novice whilst still engaging the most sophisticated practitioner. Our content ranges from the practical ‘how to’s’ to discussions on business models and policy.

            When we started we had quite a niche audience but we have long since gone mainstream producing text, videos and podcasts that help the most respected business leaders, policy makers and the average guy/gal make daily decisions

  6. One massive loan to improve revenue collection… Most of that revenue will now be needed to service that loan! Makes perfect sense… NOT!

    1. I know right?! We all know the local tech industry is powered by equal parts hope and tears of despair! The national power situation is totally irrelevant!!!

  7. Polical business kugona kushandisa mombe inemukaka unonaka kumora mari dzavachadya ivo iyo mombe yosara hayo isina chainodya asi yashandiswa kutsvagiswa mari.Zesa izvozvi haina mota dzekushandisa tiona vachishandisa mota dzevanhu dzekuHaya dzavasiri kubhadhara futi asi mari iyi muchanzwa henyu kuti inoshandei vanongouya.

  8. We should celebrate! A new GRAVY TRAIN!
    At least 50% is going to be misused or lost through outright corruption guaranteed this is a fact, let’s not lie to each other.
    The money will probably buy around 200 000 new meters if we’re really lucky even though 50 million could buy at least 800 000 meters including duty nd transport. Just be happy that they at least bought the meters lol
    All aboard the gravy train!

  9. Im a staunch believer of criticism only if it’s constructive. @Garikai, only take criticism when it’s given in a compassionate way and prudently

  10. ZESA single phasemeters are very expensive, they range between USD 100-USD110.In South Africa you can get a single phase meter for R300 (USD 20). This means that while in Zimbabwe you can buy one meter while buying 4 in South Africa

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