The mining sector, Zimbabwe’s largest electricity consumer, owes the Zimbabwe Electricity Supply Authority (ZESA) Z$684.8 million (US$45.6 million), accounting for 12% of ZESA’s debtors. This debt burden is hampering ZESA’s ability to invest in infrastructure and manage operational costs, with the mining sector now the second-largest debtor after the industrial sector, which owes Z$5 billion.
ZESA is grappling with over Z$5.7 billion in consumer debts amidst challenges like low water levels at the Kariba Dam and outdated equipment at Hwange Thermal Power Station, which limit electricity generation. The utility is also exporting electricity during non-peak hours to earn foreign currency for critical expenses, including loan repayments, coal purchases, and maintenance.
The strained relationship between ZESA and the mining sector has seen threats of power cutoffs to indebted companies. Power shortages and outages have disrupted mining operations, underscoring the need for a stable energy supply. ZESA plans to double its grid capacity by 2025, adding 2,300 MW to meet the growing demand, largely driven by new lithium mining projects and the upcoming US$1.5 billion Dinson Iron and Steel Company plant.
Large-scale miners are required to establish their own power generation facilities by 2026 to address power demands, projected to exceed 3,000 MW in the next two years. This shift towards self-generation and increased capacity aims to stabilize Zimbabwe’s power supply, supporting the mining sector’s growth and reducing dependency on ZESA.
