Zimbabwe Considers Electricity Price Rise

Zimbabwe’s energy minister Mr Fortune Chasi has stated that given low water levels at Kariba dam the country expects power cuts to continue in the short term, with the ministry also considering whether to increase prices or switch off power supplies to debtors. 

Businesses are already struggling with the extensive power cuts of recent weeks. However, the minister stated that government needs to ensure that tariffs reflect the cost of production.

Meanwhile, mining companies have been instructed to use foreign currency to pay for power despite a government announcement that foreign currency has been outlawed. Minister Chasi said that the country could not afford any stoppages in production. Some hotels have also been directed to pay the state-owned power utility in foreign currency in order to avoid disruption.