HARARE – Energy utility, Zimbabwe Electricity Supply Authority (ZESA), has been allowed to invoice exporters in foreign currency, which should lead the parastatal to settle its obligations in foreign currency.
Under new rules in the just-published Statutory Instrument 131 of 2022, exporting companies are now required to pay a portion of their electricity bills in US dollars, euros and other eligible currencies.
The move is expected to alleviate the challenges the utility faces in sourcing foreign currency for its operations.
The statutory instrument shows that proceeds from foreign exchange payments are used to purchase essential equipment and machinery.
The utility has also been instructed by the central bank to maintain a special foreign currency account to be used only for permitted purposes.
- Zesa Tells Public To Brace For Extended Load-shedding
- Zesa Announces Action Packed Load-shedding Timetable
The latest decision also seeks to ensure that ZESA maintains foreign loan repayments and foreign insurance transactions.
Exporters in key sectors of the economy such as mining, agriculture and horticulture have continued to earn more foreign exchange in the hope that they can also use some of their cash earnings to pay utility bills.
The regulations in force apply for the following six months, unless it has been extended beforehand for a new period not exceeding six months.
Electricity generation is considered an important input for export industries in terms of facilitating production processes.
ZESA needs more than $17 million to import electricity each month.
- Editor/ main report by ZBC News
