South African power utility Eskom Holdings SOC Ltd. started exporting up to 400 megawatts to Zimbabwe. This signals easing a protracted power crisis characterized by daily outages lasting up to 18 hours in South Africa. Eskom figures prominently in the economic and political landscape of South Africa on account of the controversies the power plant have raked in the recent time. The bailout plan for the state-owned power major entails a whopping US$ 4.5 billion, in the short and medium term, which the economists apprehend would widen the fiscal deficit of the beleaguered economy reeling under the pressure of record level of unemployment and consequent frictions.
The availability of additional power to Zimbabwe would help that country to tie down the power deficit, which will go up when the summer is about to set in. Eskom, started a so-called discretionary supply of 50 mega watts, which will be scaled up as and when required. Zimbabwe owes South African power utility US$23 million in unpaid bills. Zimbabwe has committed to weekly payments of $890,000 to clear the debt.
