Zimbabwe’s neighboring countries have proposed to recapitalize the country’s existing power stations and raise coal-mining output in a move that is expected to end Southern Africa’s power woes and also help cash strapped Zimbabwe with an extra portion of foreign currency.

The three entities have also shown interest in the Munyati power station situated close to the town of

Kwekwe in the Midlands Province. Anglo Platinum, which has been negatively affected by power outages in its home country, has asked to be allowed to export electricity to South Africa as part of its proposal.

According to information at hand, Southern Africa requires US$46.4 billion for long-term development and sustainability of the region’s energy sector. Another US$5 billion is needed to complete current

energy projects by 2010.

Tomaz Salamao, SADC executive secretary said in a statement to the region’s media:

"The current electricity supply demand balance in the SADC region is precarious, as evidenced by the recent frequent recurrence of blackouts and load shedding in virtually all the countries of the SADC mainland as well as Madagascar."

Since the beginning of 2008, South Africa, Namibia and Zimbabwe have been among the countries in the region hit by widespread planned and unplanned outages, affecting every sector of the economy. Ben Rafemoyo, chief executive officer of the Zimbabwe Electricity Supply Authority (ZESA), recently told the Parliamentary Portfolio Committee on Mines, Energy, Environment and Tourism that his organization needed US$3.8 billion for a complete overhaul of obsolete equipment to generate at least 2,000MW needed to meet national requirements.

"We are in a precarious financial position because our tariffs are very low," said Rafemoyo. The Hwange power station in Matabeleland North Province was producing 280MW, when it could generate 750MW at maximum capacity.

"Other power stations can generate 170MW but are not generating anything because of lack of coal. The older the machines at power stations, the more breakdowns we experience and these are costly to

repair."

Zimbabwe generates 1,000MW, against a daily requirement of 1,500MW, and imports 40 percent of its electricity from the Democratic Republic of Congo, Mozambique and South Africa. The country has had to resort to power rationing because of the shortfall, which has affected many industries, homes, schools and hospitals.

Zimbabwean power stations have also been affected by coal shortages. Energy Minister Mike Nyambuya confirmed that failure to provide enough coal and ageing equipment had affected the country's ability to fulfill its energy requirements.

Although energy shortages were predicted in 1995, nothing was done about the looming problems.

"Most of our machinery for energy generation has not been replaced in the last ten years," he said.

Eskom, according to senior officials in the energy industry, was ready to pump up to US$25 million into the Hwange Colliery Company (HCC), Zimbabwe's sole coal producer, to ensure reliable and uninterrupted coal supplies if the proposed takeover of the three thermal stations, with a combined potential of 500MW, was formalized.

Burzil Dube, spokesperson for HCC said: "I cannot say offhand how much would be needed [to resuscitate the mining company] but, certainly, we would need a huge recapitalization if we would have to supply enough coal for the power stations."

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