US Federal Reserve’s latest minutes provided little direction as its signals on interest rates and inflation were mixed
Thungela, Exxaro and Seriti are all committed to the dark rock despite the turn to renewables
Deputy president says local govenrment must collect from consumers or face consequences
The party’s internal leadership contest in December is expected to gain momentum once the the nomination process kicks off
The ports giant sees first-half revenue surge 60%, but expects its growth boom to moderate in the rest of the year
The rand will continue to lose value if we don't adopt policies that create a superior emerging market with a far lower risk premium
Food Safety Agency tells retailers and food producers it will seize vegan products with names that it says are for meat
Justice department chief insists the ongoing investigation into Trump would be ‘severely compromised’ if the affidavit is released
England captain leads fight back but Jansen and Maharaj put on 72 for seventh wicket to put SA in control
‘It is worrying that some other conditions, such as dementia and seizures, continue to be more frequently diagnosed after Covid-19, even two years later’
Zimbabwe’s state electricity company is awaiting the outcome of international arbitration in a currency dispute with the country’s biggest private power producer that is holding up other investments.
Nyangani Renewable Energy, which operates solar and hydropower plants in Zimbabwe and Malawi, took the Zimbabwe Electricity Transmission Distribution Company to the Johannesburg branch of the International Chamber of Commerce to rule on the disagreement over a currency conversion agreement.
“We eagerly await the outcome of the arbitration,” Ian McKersie, the MD of Harare-based Nyangani said. “If it is favourable, it will allow us to resume the very conducive working relationships we have.”
Zimbabweans are subjected to regular power cuts because of the inability of Zesa Holdings to meet demand, and the state-owned company is struggling to pay for privately produced power because of a shortage of foreign currency. Other projects are stalled as producers await the outcome of the case.
Private electricity has the potential to transform the industry in Zimbabwe, and help repair an economy that is yet to recover from a collapse two decades ago. While independent power producers supply only 135MW to the grid, licences for facilities with a combined capacity of 6,858MW have been issued, according to a parliamentary report. That is more than enough to meet demand for electricity.
The dispute was heard on June 14. Nyangani says it is owed $8.6m for power delivered from its 15MW Pungwe B run-of-river hydropower plant. It wants to be paid in US dollars but Zimbabwe Electricity Transmission and Distribution, a unit of Zesa, is seeking to pay in Zimbabwe dollars. The southern African nation’s currency is not accepted outside its borders.
Zesa declined to comment.
Nyangani has built eight power plants in Zimbabwe since 2009 with a total generation capacity of 32MW.
Would you like to comment on this article? Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.