Mozambique’s EDM to tackle Zimbabwe over US$8 million electricity bill

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Mozambique’s EDM to tackle Zimbabwe over US$8 million electricity bill

4:09 CAT | 30 Mar 2017

Electricidade de Moçambique (Mozambique Electricity – EDM) has created a commission to negotiate with the Zimbabwean government over its approximately US$8 million unpaid electricity bill.

Mateus Magalo, chairman of the Board of Directors of EDM, says the debt relates to 15 years of electricity generated by the Mavuzi power station in the district of Sussundenga, in the province of Manica.

Magalo explained that the commission had already held meetings with the Zimbabwean authorities that had resulted in the reduction of the debt due to the supply of electricity that Mozambique also extends to other countries in the region.

“The supply of energy to Zimbabwe comes within a long-standing agreement which we continue to honour. However, as we increase power generation, two things happen. One is more availability for neighbouring countries that do not have the resources we have, and the other is that we can increase national revenue, as well as regional. Therefore, Zimbabwe, Zambia and other neighbouring countries are our other partners. We are maturing in the market and learning how to be a mature business. The conversation with Zimbabwe’s colleagues is to see if we can settle the debts that they have with us. We are now at around five to seven million dollars,” Magalo said.

The Mavuzi hydroelectric plant, inaugurated by President Filipe Nyusi, supplies electricity to the cities of Manica in Sofala province and Mutare in neighbouring Zimbabwe.

Source: Rádio Moçambique