STATE-OWNED power utility ZESA has signed a US$110 million syndicated loan with pan-African multilateral trade finance institution Afreximbank, the bank said on Friday.
The bank, headquartered in Cairo, said the funds will help a ZESA subsidiary procure pre-paid electricity meter devices and also cushion the losses the utility provider suffers as a result of bad debts.
“The funds will help Zimbabwe Electricity Transmission & Distribution Company (ZETDC) to improve revenue collection through smart meters and pre-paid meters and thus pay off regional creditors’ accounts,” Afreximbank said in a statement.
Many electricity users in Zimbabwe are on a post-pay system and rack up large debts, which is bad for ZETDC’s books and hurts its ability to supply power.
Meanwhile, Afreximbank said it had signed financing deals worth another US$78 million with three other Zimbabwean companies – the Central African Building Society, CBZ Bank and ZB Bank – at a trade fair in the South African port city of Durban.