Mishma Chakanyuka, Staff Writer 
THE Zimbabwe Economic Society (ZES) says the multi-currency system should exist until 2030 to enable independent power producers to repay investors, lenders and equity players.
While the government has insisted that the multi-currency will be in place during the National Development Strategy 1 (2021-2025) period, experts have previously cautioned authorities over policy inconsistency.
Nigel Chanakira
“We have to be guaranteed a multi-currency regime up until at the very latest 2030 because we need to repay investors, lenders and equity players around that major investment. If we are going to do it, let’s do it in a structured way without policies that could change at a whim,” ZES president Nigel Chanakira said.
There has, however, been mixed feelings over the continued use of the powerful US dollar, with players in some quarters demanding de-dollarisation and increased use of the local currency.
Meanwhile, Chanakira said Independent Power Producers (IPPs) were also demanding a reasonable guaranteed minimum tariff and access to foreign currency through the auction system.
“I am aware of three power plants that I am personally involved with. Our consideration is that we are done with the paperwork, we are now waiting for those guarantees, such as reasonable guaranteed minimum tariffs, which are $10,36 per megawatt hour and access to forex through the auction system or otherwise. That is imperative, otherwise those three projects will not go forward,” he said.
The country’s current goal is to generate 1 100 megawatts from renewable energy sources by 2025, but this has been slowed by a lack of investment by IPPs as the country battles currency volatility and sub-economic tariffs.
Most, if not all, IPPs require foreign currency to fund the development of solar energy plants.
Last December, the government proposed incentives to accelerate power generation through solar energy projects by privately-owned firms worth approximately $1 billion.
Chanakira said there was need for continued duty-free access to solar inverters and panels as green energy plays a big role in easing the country’s power shortages.
Zimbabwe is currently generating about a third of its peak power demand and experiencing acute shortages, which have been attributed to the low dam levels at its Kariba hydropower station and the old infrastructure at its coal plants.
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