SA’s Eskom threatens to cut electricity next week after Zesa fails to stick to payment plan

South Africa’s power utility Eskom has threatened to cut off electricity supply to Zimbabwe at the end of the month if ZESA does not honour its debt obligations. This comes after reports that Zesa failed to stick to the payment plan agreed in July, with the power company defaulting on its very first payment. Zimbabwe owes Eskom close to $100 million and is now $44 million in arrears after failing to stick to the payment plans.

A source who spoke to the Financial Gazette said:

The foreign currency shortages could plunge the country into darkness because ZESA has defaulted even on its very first instalment to Eskom. Now, we are in a crisis because we have been given up to the end of this month to pay off the debt arrears. Failure to pay monthly instalments of about $22 million, Eskom has threatened to cut supplies to the country.

More: Financial Gazette

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The Zimbabwe Electricity Supply Authority, (ZESA) under the Ministry and Energy and Power Development was established as the producer, distributor, and regulator of Zimbabwe’s electrical power by Act in 1981 and formed in 1985. It has a number of subsidiary companies with various specialties in... Read More About Zesa

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