SOUTH Africa’s power utility Eskom has threatened to cut electricity supplies to Zimbabwe unless the country, battling a foreign currency crunch, honours its debt obligations before the end of next week, sources disclosed this week.
State-owned power utility, ZESA, has failed to stick to a payment plan agreed with Eskom in July this year.
The country owes the South African power utility close to $100 million. ZESA had agreed to pay about $22 million a month starting in July, but defaulted on the first instalment due to a shortage of foreign currency.
Zimbabwe is now $44 million in debt arrears to Eskom, according to information obtained by TheFinancial Gazette.
“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,” said a well placed source at ZESA.
More: Financial Gazette
