Power Sector Reforms in Zimbabwe: Will Reforms Increase Electrification and Strengthen Local Participation?
Chief Business Planner
Zimbabwe Electricity Supply Authority
is a developing country currently in the grips of an economic crisis. The power
sector has been starved of investments and there is inadequate revenue flow into
the country to finance new investment. Internal resources are inadequate to
maintain the current system and to finance new investment. Financial and
operational performance has deteriorated. Rural electrification is very low with
only 18% of the population having access to electricity. The government and the
utility, Zimbabwe Electricity Supply Authority (ZESA), have recognised their
inability to meet these challenges and have initiated a reform program in order
to open up the power sector to private investors.
article analyses the current technical and operational problems faced by the
utility and their impact on its financial performance.
In addition, the article reviews the status of electrification in
Zimbabwe, and the participation of local private investors in the power sector.
Policy recommendations on how the technical and financial performance of
the utility can be enhanced and on how the rate of electrification, especially
in rural areas, can be improved are presented. The increased participation of
local private sector players into the power industry is a key issue and
recommendations are made on how the government can provide incentives to
facilitate their effective participation.
PSR, local participation, expanded electrification.
AFREPREN/FWD © 2007