Eskom has confirmed it will start selling large quantities of electricity to Zimbabwe again soon.
“Eskom can confirm that we have agreed on a payment plan for the outstanding debt and that proof of payment has been received,” the South Africa utility told Business Insider.
Zimbabwe’s government says it has started paying weekly disbursements worth R13m to Eskom, in exchange for 400MW of power from SA’s power utility.
The deal is expected to ease Zimbabwe’s power woes, which have seen load shedding of up to 18 hours a day. As a result of the rolling power cuts, several companies have closed down, leading to more misery for the country, whose economy is set to contract by 3% in 2019.
Addressing a post-cabinet briefing on Tuesday, information minister Monica Mutsvangwa said: “Cabinet was informed by the minister of energy and power development that an arrangement to unlock 400MW has been concluded with Eskom.
“In terms of this arrangement, government has commenced through treasury the payment of $890,000 per week towards settlement of its debt with Eskom.”
Mutsvangwa said Zimbabwe was pursuing a separate arrangement to secure power imports from Mozambique.