Electricity generation on the up
THE Zimbabwe Electricity Supply Authority says the country’s energy situation has improved after settling a US$43 million Eskom debt and improving generation at Hwange Thermal Power Station.
Zimbabwe is using an average of 1 610MW daily, with 350MW imported from South Africa’s Eskom and Hidroelectrica de Cahora Bassa of Mozambique.
The notable increase in local power generation to an average of 1 260MW daily from 1 020MW in January 2017 is attributable to refurbishment and maintenance of Hwange units, which upped generation to 530MW from an average of 329MW daily.
Zesa spokesperson Mr Fullard Gwasira told The Sunday Mail Business that, “The improved power supply situation that has resulted in no load shedding since December 2015 is mainly as a result of the availability of the generation plants and imports.
“Hwange and the small thermals are able to contribute on the average 530MW, with Kariba and the imports closing the deficit gap.
“We are also now having favourable long-term agreements in place with Eskom.”
The Reserve Bank of Zimbabwe and Zesa struck a deal to liquidate arrears to Eskom in four months, averting potentially ruinous power cuts.
It was agreed that Eskom would not cut off its 300MW megawatts to Zimbabwe until and unless the country violated the agreement.
Mr Gwasira said: “The two utilities are engaging on power supply related issues and Zesa Holdings has demonstrated its willingness to meet the obligations of the contract, which Eskom has appreciated and taken on board hence the current normalisation of relations.
“Issues relating to bilateral arrangement need both parties’ consent for disclosure. Regarding the import contract, it suffices to say that the evidence of good trading relationship is testimony to the fact that some payments are being made to the satisfaction of Eskom.
“Every effort is being directed at recovering debt from customers and making the necessary payment for the power imported.
It is hoped that customers will play their part in settling debt accrued and that our various customers who are assisting with forex continue to support us.”
Hwange’s Unit 6 is undergoing a major overhaul and is expected online in August this year.
The Kariba South Hydro Extension Project is 85 percent complete and on course for commissioning of Unit 7 by the end of the year.
Fundraising for the Hwange expansion project is underway, with Government and the Zimbabwe Power Company a Zesa subsidiary finalising conditions precedent for a loan drawdown from China Eximbank. FIDELITY Life Assurance has launched a joint medical aid-funeral cover called Fifelity Life Medicover.
Fidelity Life general manager (marketing) Mrs Melanie Gumbo told The Sunday Mail Business that the new scheme - available to all funeral policyholders - would give access to free prescription drugs for clients of Fidelity Life Medical Aid Society.
“This product was created as a direct response to market needs that show that the majority of Zimbabweans do not have access to medical insurance,” said Mrs Gumbo. “The medication bill can be a bitter pill to swallow and this is an innovative way to use the group’s synergies by offering our customers a free prescription drug cover with each funeral policy.”
Under the scheme, a policyholder issued with a prescription while covered by Flimas will get free medication.
Mrs Gumbo said Fidelity Life was “one of the first on the market to offer a micro-insurance type product”, in line with the micro-insurance framework recently launched by the Insurance and Pensions Commission to assist marginalised groups.
Fidelity Life hopes revamping the company’s portfolio will augment revenues and spread risk in a market where its anchor business insurance is underperforming. In 2016, its insurance units in Zimbabwe and Malawi took a hit.
While premium income for the local life assurance subsidiary declined eight percent to US$12,4 million from US$13,5 million a year earlier, the Malawian unit
Vanguard Life Assurance fell 24 percent to US$2,5 million from US$3,1 million in 2015. It was the same for the asset management business which recorded a loss of US$190 000 due to fair value adjustments to its property portfolio. The microfinance unit bucked the downtrend, posting a profit of US$1 million from US$380 000 over the same period a year earlier.
Fidelity Life ventured into insurance in 2005 when it acquired Fidelity Life Medical Services Company, while Fidelity Funeral Assurance opened a year later. The firm also has interests in life assurance, employee benefits, asset management, actuarial services and property development.