ZESA Could Smoke Out Tobacco Harvest

Source from:  fingaz.co.zw 08/28/2007

Kumbirai Mafunda Senior Business Reporter ZIMBABWE'S ambitious plans to bump up its tobacco crop to above 100 million kgs could fall flat due to erratic power supplies. Tobacco growers will next month begin planting irrigated tobacco with a target to increase output above 100 million kgs, up from 80 million kgs expected to be harvested by the close of the auction floors early next month. But officials at ZESA Holdings, the country's power utility, told The Financial Gazette this week that persistent power shortages could disrupt irrigation cycles and thwart farmers from realising maximum crop yields. "The tobacco season is around the corner and by its nature tobacco production is 100 percent dependent on irrigation and the availability of electricity is crucial to this sector. So if we don't come up with firm arrangements to secure electricity the challenge is we will have lower yields, which will affect our foreign currency earnings," said an official with ZESA. The officials said ZESA needed funds to pay off its debts to regional power utilities, reportedly amounting to US$40 million, to enable it to secure additional power imports. "We could save ourselves by getting what is available in the region and doing what is necessary to reduce our power import bill. The shortest way is to mop up what is available in the region," added another ZESA official. Regional power utilities have reportedly reduced electricity supplies to ZESA to 200 megawatts (MW) from 450MW because of outstanding arrears, which the government has failed to clear before ZESA could negotiate new contracts. To increase local power generation, the officials called upon Hwange Colliery Company to immediately supply steaming coal to fire generators at ZESA's three thermal power stations in Harare, Bulawayo and Munyati, which have been lying idle for almost a year owing to coal shortages. Already the government has admitted that the upcoming wheat harvest is likely to be the worst since independence in 1980. Wheat output is projected to fall below the 85 000 tonnes harvested last year, and well short of the total domestic consumption of 400 000 tonnes a year because of disruptions to irrigation caused by power shortages. Enditem