Time for action
AS Zimbabwe limps from one crisis to another, it has emerged that the
country is literally living on the edge, with South Africa’s power utility,
Eskom, classifying it as a customer that can be switched off after a mere 10
minutes’ notice.
The announcement of Eskom’s decision, which is being made to the
nation several weeks after it was communicated to the government, comes at a
time when Zimbabwe is already reeling under the impact of a severe energy
crisis.
Regional power suppliers have already reduced electricity to the
Zimbabwe Electricity Supply Authority (Zesa) over huge debt arrears, forcing
the parastatal to begin load-shedding.
Household consumers as well as industry and commerce have been hit
hard by the power rationing. Some manufacturers are reported to have cut
output by at least 50 percent in the past month.
As if that was not bad enough, a worsening fuel crisis is haunting
motorists, business and workers, crippling the public transport system as
well as production at a large number of companies.
Although several businesses have resorted to the black market for fuel
to maintain their operations, this is at best a short-term solution given
the exorbitant prices being charged for diesel and petrol by the illegal
traders.
It won’t be long before more firms are forced to reduce output and
retrench staff to protect themselves against an increasingly harsh operating
environment.
Ultimately, many will have to close if the fuel and electricity crises
are not resolved, leading to further job cuts in a country where
unemployment is already above 70 percent.
Whether the government has some strategy for dealing with these very
serious and pressing problems is uncertain.
The unfortunate tendency to keep matters close to its chest, even
matters that have serious national implications, means that Zimbabweans
cannot even be sure whether the government is attempting to find solutions
to the country’s energy crisis.
But it must have become crystal clear even to the government that a
comprehensive and sustainable solution is urgently needed if most of
industry is not to grind to a halt in the next few months.
That Zimbabwe’s leaders are faced with an almost insurmountable task
is not in doubt.
There is no getting away from the fact that Zimbabwe simply does not
have the foreign currency to import either fuel or electricity.
Zesa, for example, has tried to resolve the hard cash problem by
urging exporters to settle their electricity tariffs in foreign currency so
it can pay for more imports and settle its debt arrears.
But not only is this a short-term solution, most exporters cannot
comply with such a requirement because Zimbabwe’s capacity to generate
foreign currency has been hit by government policies that have destabilised
key hard cash earning sectors.
It is clearly unreasonable to expect these sectors to pay for
electricity in foreign currency when they are struggling to conserve
resources as they fight for their very survival.
In addition, Zimbabwe has become a bad debtor because of the hard cash
squeeze, which means the government has very few places left where it can
search for fuel and electricity.
Neighbours in the region and traditional allies of the ruling Zanu PF
are rightly wary of sticking their necks out any further on behalf of a
government that has shown little, if any, commitment to solving its problems
so that it can stand on its own feet.
But while Zimbabweans fully appreciate the difficult task facing the
government, they are not in the mood for excuses.
All Zimbabweans want at this point is for the government to get its
act together and ensure that the country continues to function.
That is not too much to ask.