Almot Maqolo, Staff Writer 
THE Zimbabwe Energy Regulatory Authority (Zera) says it is lobbying Treasury to scrap value-added tax (VAT) on renewable energy products and energy-efficient merchandise to boost local power generation.
Solar and electrical equipment are exempted from import duty, but importers still pay 15 percent VAT.
“We commissioned a study with a consultant on the upside of taking VAT on renewable energy gadgets and energy efficient gadgets,” Zera chief executive, Edington Mazambani, told The Financial Gazette recently.
“We are awaiting a government decision in that regard because we did some simulations and realised that if we were to take off VAT, solar equipment would become affordable for the communities we want to power and also to make sure that we extend access to electricity,” he said.
Zera says low water levels at Kariba Dam have seen the country’s energy mix getting less sustainable, with increased reliance on coal.
Hydroelectricity has traditionally been the country’s dominant source, but recent droughts and increased investment in coal — at the Hwange plant — have resulted in “clean” energy playing a smaller role in the country’s energy mix.
Edington Mazambani
Subscribe to The Financial Gazette
This is premium content. Subscribe to read article.
