News24
10 Oct 2019, 01:14 GMT+10
Zimbabwe has raised its average electricity tariff by 320% to ramp up power supplies at a time of daily blackouts but the move will likely anger consumers already grappling with soaring inflation and stagnant wages.
The southern African country is experiencing its worst economic crisis in 10 years, seen in triple-digit inflation, 18-hour power cuts and shortages of US dollars, medicines and fuel that have evoked the dark days of the 2008 hyperinflation under the late President Robert Mugabe.
Wednesday's was the second increase in the price of electricity inside three months and follows sharp rises in fuel and basic goods prices in the last week. Salaries have not kept pace, prompting citizens to blame President Emmerson Mnangagwa's policies for the crisis.
The Zimbabwe Energy Regulatory Authority (ZERA) said it had approved an application by Zimbabwe Electricity Transmission and Distribution Company (ZETDC) to raise the tariff to 162.16 cents from 38.61 cents.
ZERA said the tariff rise was necessary after inflation soared - the International Monetary Fund (IMF) says it was about 300% in August. Zimbabwe introduced an interim sovereign currency - the Real Time Gross Settlement dollar or Zimdollar - in February which quickly fell prey to black market speculation.
In an effort to support the Zimdollar, the government in June outlawed the use of foreign currencies in local transactions. But the move failed to curb the Zimdollar's slide.
More price hikes
Consumers seem set for more price increases after the energy regulator said that, starting November, the power utility would index its tariff to the US dollar to enable it "to recover from inflation and exchange rate changes".
The new tariff would allow ZETDC to raise money to repair its generators, as well as pay for imports from South Africa's Eskom and Mozambique every month, the regulator said.
Hopes that Zimbabwe's economy would quickly rebound under Mnangagwa, who took over after the late Robert Mugabe was deposed in a coup in November 2017, have faded fast as ordinary people grapple with eye-watering inflation that has eroded earnings and savings.
On Monday, treasury data showed the economy was worse off than initially thought. It is now projected to contract by up to six percent this year due to the power cuts, which have hit mines, industry and homes and an El Nino-induced drought that has left the country needing to import food.
Mnangagwa, whom critics accuse of lacking commitment to political reforms and using his predecessor's heavy-handed tactics to stifle dissent, has pleaded for time and patience to bring the economy back from the "dead."
Get a daily dose of Dublin News news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Dublin News.
More InformationKABUL, Afghanistan: Afghanistan, long associated with war and instability, is quietly trying to rebrand itself as a destination for...
SANTA CLARA, California: Executives at Nvidia have quietly been cashing in on the AI frenzy. According to a report by the Financial...
NEW YORK, New York - Global stock indices closed with divergent performances on Tuesday, as investors weighed corporate earnings, central...
TORONTO, Canada: Canadian Prime Minister Mark Carney announced late on June 29 that trade negotiations with the U.S. have recommenced...
Vancouver, Canada: A high-stakes legal showdown is brewing in the world of athleisure. Lululemon, the Canadian brand known for its...
LONDON, U.K.: British oil giant Shell has denied reports that it is in talks to acquire rival oil company BP. The Wall Street Journal...
DUBLIN, Ireland: The High Court has lifted an anonymity order, allowing Trinity College Dublin and the Pharmaceutical Society of Ireland...
PARIS, France: France is taking stronger steps to reduce smoking. A new health rule announced on Saturday will soon ban smoking in...
VILNIUS, Lithuania – A growing body of research suggests that selectively restricting a single nutrient in our diet could have profound...
DUBLIN, Ireland: Former government minister Mary Hanafin has confirmed she will seek the Fianna Fáil nomination to contest Ireland's...
FRANKFURT, Germany: Germany has become the latest country to challenge Chinese AI firm DeepSeek over its data practices, as pressure...
DUBLIN, Ireland: Ireland's EU Commissioner Michael McGrath has defended Commission Vice President Kaja Kallas over her recent comments...