DRC power utility dumps ZESA

HARARE - Democratic Republic of Congo (DRC) power utility, Snel, has suspended electricity supplies to the broke Zimbabwe Electricity Supply Authority (ZESA), raising the spectre of even worse frequent power cuts for consumers and industry.
Snel is demanding that ZESA should first fully repay all

outstanding debts before resuming power supplies. The current three-year contract was supposed to end on December 31 but Snel has prematurely terminated the agreement and refused to sign any new deal before the current debt is fully repaid.
Zimbabwe imports about 35 percent of its power supplies from Snel, Eskom of South Africa and Hydroelectrica de Cahora Bassa of Mozambique.
ZESA owes the DRC power supplier US$3,47 million. The cash-strapped power utility’s total foreign debt is in excess of US$330 million, a huge sum for a country facing an acute foreign currency crisis and whose international credit rating has been reduced to junk status.- Gift Phiri

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