Cabinet has approved a restructuring of the ZESA Group that will bring its generation, transmission and distribution businesses together into a leaner, vertically integrated structure to improve efficiency and shore up the utility’s viability.
The move will also involve cutting excess staff through retirement and retrenchment, with the exercise funded from internal resources.
The plan was announced at a post-Cabinet briefing in Harare on Tuesday chaired by Women Affairs, Community, Small and Medium Enterprises Development Minister Monica Mutsvangwa.
“As part of ongoing efforts to ensure energy self-sufficiency under Vision 2030 targets, the Minister of Energy and Power Development, Honourable July Moyo, presented the Status Report on the Restructuring and Re-organisation of the ZESA Group, which was approved by Cabinet,” said Mutsvangwa.
“The nation is advised that, following the placement of the ZESA Group shareholding under the Mutapa Investment Fund, and in line with an earlier Cabinet resolution to reorganise the electricity utility into a vertically integrated platform, the principal restructuring workstreams have been substantially completed and are now in the implementation phase.
“The strategic corporate restructuring intends to create a bankable, accountable and operationally integrated electricity platform, which consolidates generation, transmission, distribution, system planning, commercial services and shared corporate functions under ZESA (Private) Limited.”
According to Mutsvangwa, the envisaged model will consolidate the separate companies that have been handling interconnected parts of the electricity system.
Added Mutsvangwa: “Consequently, a single operating company will allow for enhanced coordination of all electricity value chain facets from generation, transmission, distribution performance, outages, maintenance planning, load forecasting and investment prioritisation to consumption, on a single integrated command structure.”
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