South Africa’s electricity supplier, Eskom, said on Tuesday it would continue supplying power to Zimbabwe despite its neighbour’s soaring debt of about US $800 million.
“Eskom has not threatened to cut off electricity supplies to Zimbabwe because of an increase in debt arrears,” said the company’s chief executive Allen Morgan in a statement. He said Eskom and the Zimbabwe Electricity Supply Authority (ZESA) have agreed that Eskom opens a trust account in a bank of its choice in Zimbabwe, in which all money owed by ZESA would be deposited.
ZESA, according to Eskom, imports 13 percent of Zimbabwe’s electricity needs from Eskom. “ZESA has been a good customer,” Morgan said, adding: “However, due to the shortage of foreign currency, ZESA has been experiencing the current debt levels.”
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