Friday 24 February 2012

Is there light at the end of the tunnel?



There have been some revelations that an Indian steel making firm, Essar Africa Holdings Limited (EAHL) is set to come to the rescue of power utility ZESA. The firm is set to construct  and operate a 600 Megawatt (MW) station to generate and supply electricity across Zimbabwe. The generation station by EAHL will be situated in the Sinamatela area, about 2kilometres from the Hwange airstrip.







Image courtesy of https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhONNROjpiUcUK1ueJSSglX2hMdmx8CnJItVVg1XsqJK3YaHe2yxr6p8Z66X75W8gxF7ecvbZ33Ma9YxUu6YQLNkWY7hpr7er27wpom9EnsxJKKp2nvKgDiIiTeHyn9qK2skI_ZMSnHXdiD/s320/Essar+Africa+Holdings+Limited.jpeg
This move will reflect positively on business as most companies are aching from losses resulting from absence of power. Industrial companies in most of Bulawayo are operating at 40% capacity, with their capacity utilisation deficit standing at a staggering 60%. 

Electricity hick ups have been a constant occurrence in most households and businesses.  Most companies have been running at an expense channeling their much needed revenue towards buying high capacity generators and fuel to run these generators at the expense of the organisations. 
It is my hope that an eventual growth in the power sector due to privatisation will enhance economic growth particularly in the industrial sector which had to retrench several of its employees. 

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