Currency dispute stalls private investment in Zimbabwe energy sector

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Nyangani Renewable Energy wants to be paid in US dollars but the Zimbabwe Electricity Transmission and Distribution Company wants to pay in Zimbabwe dollars

An electrical substation. File photo: REUTERS/GO NAKAMURA

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. 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.

 

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