By 
By Ross Moyo
Cabinet has approved a major restructuring of the ZESA Group, with the power utility
’s shareholding now placed under the Mutapa Investment Fund and all generation, transmission and distribution entities set to be merged into one vertically integrated company.
Announcing the decision after Cabinet on Tuesday, Minister of Women Affairs Senator Monica Mutsvangwa said the move is part of government’s push for energy self-sufficiency under Vision 2030.
“Following the placement of the ZESA Group shareholding under the Mutapa Investment Fund, and in line with an earlier Cabinet resolution to reorganise the electricity utility into a vertically integrated platform, the principal restructuring workstreams have been substantially completed and are now in the implementation phase,” she said.
The new model will consolidate ZESA (Private) Limited as a single operating company overseeing generation, transmission, distribution, system planning, commercial services and shared corporate functions.
Why Mutapa?
The placement under Mutapa Investment Fund, whose board is chaired by former TelOne Boss Chipo Mutasa and led by its CEO. The former Reserve Bank of Zimbabwe (RBZ) Governor Dr John Panonetsa Mangudya, is intended to improve governance, attract investment and make ZESA “bankable and accountable”. The Fund manages government’s commercial assets and is expected to bring private-sector discipline to the utility.
Jobs and costs
The restructuring will also see rationalisation of excess workers through retirement and retrenchment. Energy Minister Hon July Moyo said the process will be funded internally and handled in line with the Labour Act. Some workers have already volunteered to leave, while others have reached retirement age.
Tariffs and viability
Minister Moyo said cost-reflective tariffs have improved ZESA’s financial position and will help fund operations without load-shedding. “We want to assure the nation that Zesa will continue to supply electricity… If there is a shortfall, you go into the market in the region; there are places with excesses,” he said.
Cabinet also directed the Ministry to produce a roadmap for reducing the cost of electricity production.
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