Mozambique’s national electricity firm will sell 50 megawatts of electricity to Zimbabwe, it was announced in Maputo on Thursday.
A memorandum on the deal was signed by the Mozambican company, EDM, and the Zimbabwe Electricity Supply Authority (ZESA) in the Mozambican capital.
The EDM, which will get 4.6 million U.S. dollars a month under a two-year contract, will start providing the power within two weeks, EDM chairperson Ali Sicola said.
The deal will help ease Zimbabwe’s power shortage, and the two companies will look for additional sources of power, because the EDM cannot sell more than 50 megawatts, Sicola said.
“The entry of more electricity generated from renewable sources in the country, the photovoltaic plants, will help the country increase availability and improve conditions for increasing commercial responsiveness,” he said.
Patrick Chivaura, chairman of ZESA, said the agreement is a great relief for Zimbabwe, which is going through tough times.
The Zimbabwean company also announced the settlement of a 9 million dollar debt of a previous contract that expired in 2017. Enditem