PHOTO
Across the country, residents regularly endure power outages lasting an average of 17 hours a day.
In some areas, particularly over the past few days, outages have stretched to three or even four days.
The unrelenting power shortages are not just an inconvenience; they are a dire warning that Zimbabwe is teetering on the brink of a full-blown national energy catastrophe.
And as we have seen with the water crisis that gripped urban areas in the early 2000s, without decisive action, what started as a manageable issue could soon spiral into an even more damaging and permanent failure of services.
When Zimbabwe’s water supply began to fail two decades ago, no one could have predicted that some places in Harare or even my hometown of Redcliff would go for years without a reliable water supply.
Similarly, the country’s power crisis has evolved from a series of sporadic blackouts into a widespread failure of infrastructure, compounded by neglect, corruption, and poor management.
The persistent lack of electricity is beginning to feel like the norm rather than an occasional inconvenience, and unless significant measures are taken, it may become permanent.
In this article, I will argue that the only way to restore Zimbabwe’s energy sector, and by extension, its economic stability, is to privatize the Zimbabwe Electricity Supply Authority (ZESA), the state-owned enterprise responsible for power generation, transmission, and distribution.
This proposal may seem radical to some, but it is a solution that has the potential to bring about much-needed change, unlock capital for investment, and ultimately restore the country’s electricity supply to a sustainable and reliable state.
The Crisis: A Timeline of Decline
Zimbabwe’s power crisis did not emerge overnight.
The country’s electricity problems have been festering for more than two decades, exacerbated by a combination of factors including outdated infrastructure, mismanagement, and, above all, corruption.
The crisis reached its peak during the last decade when frequent and extended power cuts became a staple of daily life.
Even with the commissioning of new power plants, such as the Hwange Thermal Power Station Units 7 and 8 in 2023, the situation has continued to worsen rather than improve.
The government hailed the commissioning of these new units with much fanfare, presenting them as a solution to the power shortages that have plagued the nation for years.
However, it quickly became clear that the promised relief was illusory.
Rather than ending the power shortages, these new units have only added to the burden of Zimbabwe’s power deficit.
A key issue is the mounting debt that ZESA owes to companies such as Hwange Electricity Supply Company (HESCO) and the Chinese contractor Sinohydro.
ZESA’s debt has reportedly reached over $430 million, and without urgent payment, there is a real risk that these new units will be shut down.
Moreover, while these new units are operational, the older units at Hwange, which were constructed in the 1960s and 1970s, are rapidly deteriorating.
The infrastructure is so outdated that a high-ranking official at ZESA confidentially told me that the units are on the verge of becoming irreparable.
If they break down again, it may be impossible to fix them.
This same fate has already befallen other major power stations, including those in Bulawayo and Harare, while the Munyati Power Station was controversially decommissioned, on the pretext of a coal shortage even though the country has abundant supplies.
On top of that, Kariba Hydroelectric Power Station, which once provided the country with significant power generation capacity, has also been hit by climate change.
Increased droughts have reduced the water levels in the Zambezi River, which feeds the Kariba Dam, causing power generation at the station to fall to just 10% of its installed capacity.
This further highlights the precarious state of Zimbabwe’s energy supply.
The Root Cause: Corruption and Mismanagement
The power crisis in Zimbabwe is not merely the result of poor planning or inadequate investment; it is fundamentally tied to the country’s entrenched culture of corruption.
The rot runs deep within ZESA, and the lack of accountability has allowed the power utility to deteriorate into a money pit that continues to drain national resources while failing to deliver basic services.
A key example of this is the case of the $5 million that was allocated to businessman Wicknell Chivayo in 2015 for the construction of a 100 MW solar power plant in Gwanda.
Despite receiving the funds, the project has still not been completed, and the power plant does not exist.
Furthermore, ZESA has been embroiled in numerous scandals, including one involving millions of dollars paid to companies that never delivered the promised equipment.
The power utility has been accused of paying these companies millions of dollars for goods and services that were never received, and yet the officials responsible for these misdeeds continue to escape any form of accountability.
In one particularly egregious example, millions of dollars were reportedly paid to a company with links to the ruling elite, which failed to deliver the necessary equipment for power generation.
Meanwhile, the company’s CEO reportedly spent lavishly on a birthday celebration in South Africa, flying dozens of relatives and friends and booking them in hotels on an expensive trip while ZESA and the people of Zimbabwe languished in darkness.
This story was allegedly suppressed, with high-ranking officials ensuring that no investigation took place.
Perhaps the most shocking example of mismanagement within ZESA is the case of Sydney Gata, the executive chairman who has overseen the utility for since the 1980s, despite being suspended or dismissed on multiple occasions.
Gata has been implicated in numerous corruption scandals, yet he remains untouchable due to the protection he reportedly enjoys from high-ranking political figures.
Under his leadership, ZESA has been plagued by financial mismanagement, failure to maintain existing infrastructure, and a blatant disregard for the needs of the citizens who rely on the utility’s services.
The level of corruption at ZESA is so profound that it has essentially paralyzed the institution, preventing any meaningful reform or improvement.
As long as ZESA remains a state-owned entity, it will continue to be mired in this cycle of mismanagement and financial misdeeds, to the detriment of the entire nation.
The Case for Privatization
It is clear that the state-run model of electricity generation and distribution in Zimbabwe has failed.
If the country is to emerge from this crisis and restore its energy sector to health, the only viable solution is the privatization of ZESA.
There are several compelling reasons why privatizing the power utility is the right course of action.
Eliminating Corruption and Mismanagement
One of the key advantages of privatization is the potential for eliminating the culture of corruption and mismanagement that has plagued ZESA for decades.
Unlike state-run entities, privately owned utilities are answerable to shareholders, investors, and regulatory bodies.
The pressure to remain profitable and competitive would incentivize a privately owned ZESA to operate with greater transparency and efficiency.
A serious investor with a track record of success would have no incentive to engage in the kind of corruption that has been rampant at ZESA, as it would jeopardize their investment.
Moreover, privatization would open the door to independent audits and third-party oversight, ensuring that any financial irregularities are quickly identified and addressed.
For a country like Zimbabwe, where corruption has become a norm rather than an exception, this could be the first step toward rebuilding trust in the energy sector.
Capital Injection for Infrastructure Investment
ZESA’s infrastructure is in dire need of investment.
Many of the country’s power plants are outdated and frequently break down, while others, like the Kariba Hydroelectric Power Station, are no longer capable of operating at full capacity due to environmental factors.
The power utility lacks the financial resources to recapitalize its infrastructure, making it incapable of addressing the power shortages that continue to cripple the nation’s economy.
Privatization could provide the capital injection that is desperately needed.
Private investors are more likely to secure the funding required to upgrade and expand Zimbabwe’s power generation capacity.
This could include refurbishing existing plants, building new power stations, and investing in renewable energy sources such as solar and wind power.
With the right investment and technological expertise, Zimbabwe could shift towards a more diversified and sustainable energy mix, reducing its reliance on coal and mitigating the risks posed by climate change.
Efficiency and Accountability
One of the greatest benefits of privatization is the potential for greater operational efficiency.
Private companies are motivated by profit, which means they have an incentive to minimize waste, improve service delivery, and keep costs down.
In contrast, state-owned enterprises like ZESA have historically been inefficient, with bloated bureaucracies and a lack of accountability.
A privatized ZESA would be more streamlined and focused on delivering value to its customers.
Moreover, the introduction of competition in the energy sector could help to drive improvements in service delivery.
For example, private companies could compete to provide electricity, leading to lower prices and better services for consumers.
One simply needs to look at how the entrance of private players in the telecommunications industry in the late 1990s revolutionized the lives of Zimbabweans.
Not only did telecommunications technology make a massive leap but phones become accessible to every person including the poor and those in rural areas, who had been excluded during the state-run Post and Telecommunications Corporation (PTC) landline era.
Attracting Foreign Investment
Privatization could also attract foreign investment into Zimbabwe’s energy sector.
In the current climate, few international investors are willing to risk their money in a state-controlled company like ZESA, given the high levels of corruption and mismanagement.
However, a privatized ZESA, under the control of professional managers and regulated by independent authorities, could be seen as a more stable and attractive investment opportunity.
Foreign investors could bring not only capital but also much-needed technical expertise to the sector.
This could lead to the introduction of new technologies, improved efficiency, and better management practices that would benefit the entire nation.
Stimulating Economic Growth
The power crisis is not just an inconvenience; it is a barrier to economic growth.
Without reliable electricity, businesses cannot function efficiently, industrial production stagnates, and the broader economy suffers.
According to the Zimbabwe National Chamber of Commerce (ZNCC), Zimbabwe’s business sector is losing an estimated $80 million every month due to power outages.
The mining sector, one of Zimbabwe’s most important industries, is expected to lose $500 million this year alone, according to the Chamber of Mines, as a direct result of the energy crisis.
Small and medium-sized enterprises (SMEs), which are crucial to the economy, are disproportionately affected by power shortages.
These businesses rely on electricity for everything from lighting and heating to machinery operation.
The inability to access consistent energy undermines productivity, increases operational costs, and limits the ability of businesses to expand or compete in regional and global markets.
Privatization would address these issues by bringing in a level of reliability and professionalism that the state has failed to deliver.
With a privately owned utility focused on profitability and efficiency, businesses would have greater confidence in the stability of power supply, enabling them to plan, invest, and grow.
Moreover, as the power utility becomes more efficient and responsive to market demands, electricity prices could become more predictable, allowing businesses to budget effectively and reduce wasteful spending.
Promoting Renewable Energy Initiatives
Privatization opens the door to alternative energy solutions, such as solar and wind power, which Zimbabwe is uniquely positioned to harness due to its abundant natural resources.
At present, the state-owned ZESA has been slow to adopt renewable energy technologies, and while there have been some isolated efforts, such as the small-scale solar power initiatives, these have not been able to scale up to meet the growing demand.
The investment in new energy technologies, such as large-scale solar farms, would be more attractive to private investors who are interested in long-term returns and are not bogged down by bureaucratic inefficiencies.
By privatizing ZESA, the country could tap into international funding sources dedicated to renewable energy projects, especially those offered by environmental organizations, development finance institutions, and climate-conscious investors.
For instance, Zimbabwe could benefit from initiatives such as the World Bank’s financing for clean energy projects or the Africa Renewable Energy Initiative (AREI).
These types of investments could lead to the development of solar, wind, and even biogas power plants, which are critical for diversifying the country’s energy mix and ensuring sustainability in the face of climate change.
Addressing the Challenges of Privatization
While privatization offers a viable solution to Zimbabwe’s energy crisis, it is important to acknowledge that the process would not be without challenges.
In particular, the transition from a state-run monopoly to a private sector-driven market must be carefully managed to avoid creating new inequalities or exacerbating the existing problems.
There are several potential challenges to be mindful of.
Ensuring Fair Competition
A privatized electricity sector should involve multiple players, with a regulatory framework that prevents the emergence of monopolies or oligopolies.
If only a handful of large companies are allowed to dominate the market, they could exploit consumers by raising prices without adequate service delivery.
Have we not witnessed this with the three mobile network providers (Econet, NetOne, and TeleCel) in the telecommunications sectors?
To avoid this, the Zimbabwean government must establish a robust regulatory authority to ensure that competition remains fair and that consumers’ rights are protected.
Managing Social Impact
Privatization has the potential to increase electricity prices, at least in the short term, as private companies look to recover their investment and make a profit.
In a country like Zimbabwe, where poverty is widespread and many citizens are already struggling with the cost of living, this could have significant social consequences.
However, these challenges are not insurmountable.
The government could introduce safety nets for vulnerable populations, such as subsidies for low-income households, while also ensuring that the benefits of privatization, such as improved service delivery and more reliable power, outweigh the costs.
Ensuring the Right Investment Partners
A critical consideration in the privatization process would be the selection of the right investor or group of investors to take control of the utility.
Not all private companies are suitable to manage a national energy grid, and it is crucial that Zimbabwe seeks out investors with a proven track record in managing power utilities, with a commitment to sustainability and ethical business practices.
This could include international firms with experience in emerging markets or local companies with the financial backing and expertise to take on such a responsibility.
Job Losses and Worker Protection
Privatization may lead to job losses, especially in the context of a more efficient and streamlined company structure.
Many employees within ZESA may face redundancy as the new private management looks to cut costs and improve productivity.
While this is a difficult reality, it is important that any privatization process includes provisions for worker retraining, severance packages, and opportunities for redeployment within the energy sector or other industries.
Worker protection laws should be strengthened to ensure that those affected by privatization do not face undue hardship.
Conclusion
Zimbabwe’s power crisis has reached a critical juncture.
After more than two decades of deterioration, the country’s energy infrastructure is on the brink of collapse.
Power shortages have become a daily struggle for millions of Zimbabweans, and there are few signs that the current system, led by the state-owned Zimbabwe Electricity Supply Authority (ZESA), is capable of resolving the crisis.
Mismanagement, corruption, outdated infrastructure, and a failure to diversify the country’s energy mix have all contributed to the current situation.
The solution lies in privatizing ZESA.
Privatization offers the potential to eliminate corruption, introduce much-needed capital for infrastructure investment, improve service delivery, and unlock the country’s renewable energy potential.
While the transition to a privatized power sector will present challenges, these are far outweighed by the long-term benefits of bringing professionalism, efficiency, and sustainability to Zimbabwe’s energy system.
Zimbabwe cannot afford to continue down the path of state-run mismanagement.
The time for bold action is now.
Privatizing ZESA will allow the country to break free from the shackles of a failing system, restore reliable electricity to its citizens, and put its economy back on the path to growth and stability.
The benefits of privatization far outweigh the risks, and with the right regulatory frameworks and investor partners in place, Zimbabwe can finally begin to address its power crisis in a meaningful way.
The future of Zimbabwe’s energy sector lies in private hands — and the sooner the government moves towards privatizing ZESA, the sooner the country can secure a stable, sustainable, and reliable power supply for its people.
Copyright The Zimbabwean. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
