In 2019, the Finance Ministry gazetted Statutory Instrument 249 of 2019 which provided for the payment of electricity in foreign currency by exporters and partial exporters. This was after chronic electricity shortages brought about by foreign currency deficits crippled businesses, especially those who earn foreign currency for the country. As such, SI 249 of 2019 was meant to curb electricity shortages for foreign currency earners.


Statutory Instrument 122 of 2020; Exchange Control (Payment for Electricity and Related Services in Foreign Currency by Exporters and Partial Exporters) (Amendment) Order, 2020 (No. 1) has been promulgated to amend SI 249 of 2019 by stating that the responsibility to account for foreign currency paid to ZESA by exporters shall be moved from the Reserve Bank of Zimbabwe to the Ministry of Energy in consultation with the Ministry of Finance.


This is a welcome development because it ensures the funds are used for the purpose that was intended in Section 6 of SI 249 of 2019 which include payment for electricity imports, payment of external insurance for critical infrastructure and servicing of external loans. The Ministry of Energy has a better understanding of the operational needs of ZESA as opposed to the RBZ and therefore, they are better placed to oversee the foreign currency payments made to ZESA and ensure they are used for the intended purpose.


The oversight by the Ministry of Finance over the Ministry of Energy will help the Finance Minister be the accountability partner of the Energy Ministry however, it is hoped that such consultation does not hinder the Energy Ministry’s mandate and become overbearing.


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