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	<title>The Zimbabwe Daily News &#187; Eskom</title>
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		<title>Time for action</title>
		<link>http://thezimbabwedailynews.com/2003/10/time-for-action/</link>
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		<pubDate>Sun, 05 Oct 2003 08:25:21 +0000</pubDate>
		<dc:creator>Staff Reporter</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Eskom]]></category>

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		<description><![CDATA[      AS Zimbabwe limps from one crisis to another, it has emerged that the
country is literally living on the edge, with South Africa&#8217;s power utility,
Eskom, classifying it as a customer that can be switched off after a mere 10
minutes&#8217; notice.
      The announcement of Eskom&#8217;s decision, [...]]]></description>
			<content:encoded><![CDATA[<p>      AS Zimbabwe limps from one crisis to another, it has emerged that the<br />
country is literally living on the edge, with South Africa&#8217;s power utility,<br />
Eskom, classifying it as a customer that can be switched off after a mere 10<br />
minutes&#8217; notice.</p>
<p>      The announcement of Eskom&#8217;s decision, which is being made to the<br />
nation several weeks after it was communicated to the government, comes at a<br />
time when Zimbabwe is already reeling under the impact of a severe energy<br />
crisis.</p>
<p>      Regional power suppliers have already reduced electricity to the<br />
Zimbabwe Electricity Supply Authority (Zesa) over huge debt arrears, forcing<br />
the parastatal to begin load-shedding.</p>
<p>      Household consumers as well as industry and commerce have been hit<br />
hard by the power rationing. Some manufacturers are reported to have cut<br />
output by at least 50 percent in the past month.</p>
<p>      As if that was not bad enough, a worsening fuel crisis is haunting<br />
motorists, business and workers, crippling the public transport system as<br />
well as production at a large number of companies.</p>
<p>      Although several businesses have resorted to the black market for fuel<br />
to maintain their operations, this is at best a short-term solution given<br />
the exorbitant prices being charged for diesel and petrol by the illegal<br />
traders.</p>
<p>      It won&#8217;t be long before more firms are forced to reduce output and<br />
retrench staff to protect themselves against an increasingly harsh operating<br />
environment.</p>
<p>      Ultimately, many will have to close if the fuel and electricity crises<br />
are not resolved, leading to further job cuts in a country where<br />
unemployment is already above 70 percent.</p>
<p>      Whether the government has some strategy for dealing with these very<br />
serious and pressing problems is uncertain.</p>
<p>      The unfortunate tendency to keep matters close to its chest, even<br />
matters that have serious national implications, means that Zimbabweans<br />
cannot even be sure whether the government is attempting to find solutions<br />
to the country&#8217;s energy crisis.</p>
<p>      But it must have become crystal clear even to the government that a<br />
comprehensive and sustainable solution is urgently needed if most of<br />
industry is not to grind to a halt in the next few months.</p>
<p>      That Zimbabwe&#8217;s leaders are faced with an almost insurmountable task<br />
is not in doubt.</p>
<p>      There is no getting away from the fact that Zimbabwe simply does not<br />
have the foreign currency to import either fuel or electricity.</p>
<p>      Zesa, for example, has tried to resolve the hard cash problem by<br />
urging exporters to settle their electricity tariffs in foreign currency so<br />
it can pay for more imports and settle its debt arrears.</p>
<p>      But not only is this a short-term solution, most exporters cannot<br />
comply with such a requirement because Zimbabwe&#8217;s capacity to generate<br />
foreign currency has been hit by government policies that have destabilised<br />
key hard cash earning sectors.</p>
<p>      It is clearly unreasonable to expect these sectors to pay for<br />
electricity in foreign currency when they are struggling to conserve<br />
resources as they fight for their very survival.</p>
<p>      In addition, Zimbabwe has become a bad debtor because of the hard cash<br />
squeeze, which means the government has very few places left where it can<br />
search for fuel and electricity.</p>
<p>      Neighbours in the region and traditional allies of the ruling Zanu PF<br />
are rightly wary of sticking their necks out any further on behalf of a<br />
government that has shown little, if any, commitment to solving its problems<br />
so that it can stand on its own feet.</p>
<p>      But while Zimbabweans fully appreciate the difficult task facing the<br />
government, they are not in the mood for excuses.</p>
<p>      All Zimbabweans want at this point is for the government to get its<br />
act together and ensure that the country continues to function.</p>
<p>      That is not too much to ask.</p>
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