Zimbabwe acquires £35.3m loan to boost electricity supplies

August 12, 2019
| Report Focus News
A Zimbabwean family plays card 21 January 2007 in Harare after the second power cut, which has hit most parts of the country. Zimbabwe is experiencing a serious energy crisis with some areas going for up to 10 hours without electricity prompting many families to resort to using generators, firewood and candles for lighting. AFP PHOTO/Desmond Kwande (Photo by DESMOND KWANDE / AFP)

Zimbabwe has acquired two loans of more than £35.3m from India to boost the generation of electricity in the country.

The Zimbabwe government announced that the finance minister had concluded the loan agreements in the last few months.

But the $23m and $19.5m loans obtained from the Export-Import Bank of India are unlikely to immediately ease rolling blackouts.
The paper says the loans are for upgrading power plants in Bulawayo and Hwange.

Since May, power has only been available in Zimbabwe for seven hours each day, coming on late at night.

Business representatives believe the blackouts have cost the country $200m in lost revenue.

The government has blamed a drought that has led to low water levels at the major hydro-electric dam, Kariba.

It also has the little financial capacity to import all its power needs.
The fuel to power the standby generators is also in short supply – the price has increased almost seven-fold since January, our reporter says.