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Speaking Notes Hon. P. A. Chinamasa (MP) - Officially Commissioning of Kupinga Hydro Power Station

Let me start by recognising the presence of:

  • Hon. Minister of Energy and Power Development, CDE Samuel Undenge
  • Hon. Minister of State for Provincial Affairs for Manicaland Province Energy, Hon. Mandi Chimene;
  • Member of Parliament for Chipinge Central, Hon. Raymore Machingura;

Our Chiefs - Chief Muusha and Chief Sazunza, traditional and community leadership, you are most welcome;

I would also want to recognise the presence of the Old Mutual Board, Old Mutual Group Chief Executive Officer, Mr. Jonas Mushosho, Management and Staff;

Let me also acknowledge the presence of:

  • The District Administrator for Chipinge, Mr. Mashava;
  • Representatives from the Zimbabwe Energy Regulatory Authority (ZERA);
  • Representatives from Zimbabwe Electricity Supply Authority (ZESA);
  • Representatives from the Zimbabwe Electricity Transmission and Distribution Company (ZETDC);
  • The Board and Management of Kupinga Renewable Energy;  
  • Government and Council Officials;
  • Distinguished guests, ladies and gentlemen. 

A very good morning to you all.

Introduction

Our productive sectors (agriculture, mining, and manufacturing) are currently operating at sub-optimal levels. This means that the current demand for power is depressed, that is, it is less than what it should be!

What will happen in the future as the economy recovers? Zimbabwe is already on a recovery path despite some transitory challenges that we continue to grapple with. Last year our economy grew by 0.7% and this year we are projecting a growth of 3.7%.

 

As the economy grows, the demand for power follows suit. There is, therefore, need for investment in the energy sector.  

 

As you may recall, Government undertook some reforms in the energy sector that also included liberalising the sector to allow for the participation of Independent Power Producers (IPPs).  

 

I am aware of the work that some of these private players have put into their projects. What we are witnessing today is the result of hard work that Old Mutual has put into the development of Kupinga Hydro Power Station.   

 

My remarks will focus on the following issues:

  • Investment by Old Mutual in the power sector;
  • Investment opportunities; and
  • Investment incentives.

Investment by Old Mutual in the Kupinga Power Station

There is no economy that will achieve sustainable development without investment in supporting infrastructure such as power generation, roads, industrial parks, railways, housing, dams and irrigation infrastructure among others.

 

I would want to applaud Old Mutual for supporting Government infrastructure development programmes as enunciated in the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZIMASSET).

 

Investment in the Kupinga Power Station by Old Mutual is a clear demonstration of the company’s commitment to supporting initiatives aimed at promoting Zimbabwe’s sustainable development.  

 

I have been advised that the majority of the project works were provided by the residents of Rusitu Community. The Community formed a partnership that turned a previously unutilised body of water into a multi-million dollar power generation project. The project employed artisans, bricklayers and builders from the local community.

 

Going forward, access to reliable power supply will help unlock huge opportunities for the local communities through:

  • Empowerment of local people as they engage in many activities without worrying about power constraints;
  • Creation of jobs;
  • Sustainable farming activities;
  • Value addition of our agricultural output and minerals;
  • Improved health and education delivery systems; and
  • Lighting homes and making what used to be difficult chores for our people relatively lighter.   

Investment Opportunities

 

I would want to urge Old Mutual to continue supporting national programmes as it has always been doing over a very long time.

 

We are aware of the company’s investments in properties, private and listed companies as well as housing among others. We are extremely happy that Old Mutual has started investing in some non-traditional Old Mutual type of investments that include:

  • Power generation that we have witnessed today;
  • Youth empowerment programmes;
  • Funding by CABS, its wholly-owned bank, of small scale banana farming in Chibuwe and Mutema; as well as
  • Funding of over 100 small scale sugar cane farmers in Chiredzi by CABS.

There are huge opportunities that I would also want Old Mutual and serious infrastructure investors to explore particularly given the importance of such investments in transforming the livelihoods of our people.

Available opportunities are in the areas of:

  • Irrigation infrastructure development;
  • Development of factory shells and stalls for SMEs;
  • Solar energy technologies; and
  • Small hydro power development - some of the sites prioritised for development are:

Mini hydropower site

Capacity (MW)

Approximate cost million (US$)**

Expected output (MWh/a)

Tokwe-Mukorsi

Gairezi

Rusitu II

Rusitu

Tsanga

15.0

30.0

4.5

1.0

3.3

40.0

90.0

10.0

2.5

8.0

70,000

30,700

7,200

8,000

Total 53.8 150.5 115.9

 

We also have various projects that still need feasibility studies and can be developed for power generation in the long run. I have a list of 20 such sites [See Appendix 1] that I am inviting investors including Old Mutual to consider. 

 

Investment Incentives

 

There are various investment incentives that can be given to investors in strategic sectors such as energy. These include, among others:

  • Tax holiday;
  • National Project Status;
  • Exemption from payment of withholding tax; and
  • Cost reflective tariffs.

We will continue to enhance our incentives in order to make Zimbabwe an attractive investment destination.

 

Conclusion

 

We would want to see investments across all corners of Zimbabwe and not just the traditional centres. We need equitable development in order to reduce the urban-rural migration that we continue to experience.

 

Government is, therefore, exploring ways of ensuring that people become productively employed wherever they happen to be living instead of flocking to the cities in search of jobs!

Local communities should take advantage of the opportunities that investments, such as the one we are witnessing today, bring to them. 

 

Let me conclude by thanking:

  • The Old Mutual Board, Mr Mushosho and his Management team for responding to the Government’s call to look beyond their traditional investment model; and
  • The traditional leadership represented by Chiefs Muusha and Sazunza for its continued guidance and support.  

It is now my pleasure to declare the Kupinga Hydro Power Station officially commissioned.

 

CHIPINGE

24 August 2017

 

Appendix 1: Hydro power potential at existing dam sites

Name of dam

River

Province

Average flow

(m3/S)

Head (m)

Power capacity (MW)

Exp. output (MWh)

1 Mazowe Mazoe Mashonaland Central 0.58 18.9 0.170 740
2 Sebakwe Sebakwe Midlands 2.34 22.3 0.820 3,590
4 Bangala Mutirikwe Masvingo 14.01 25.1 5.510 24,130
5 Manjirenji Chiredzi Masvingo 4.11 22.2 1.430 6,260

6

Ingwezi

Ingwezi

Matabeleland South

0.36

19.7

0.110

480

7

Mwenji

Mwenje

Mashonaland Central

0.97

16.7

0.250

1,090

8 Lesapi Lesapi Manicaland 0.65 19.8 0.200 880
9 Upper Ncema

Ncema

Matabeleland South

0.52

18.6

0.150

660

10 Manyuchi Mwenezi Masvingo 1.87 39.0 1.400 5,000
11 Siya Turgwe Masvingo 1.87 22.2 0.650 2,850
12 Ruti Nyanyadzi Manicaland 2.49 22.5 0.880 3,850
13 Ngezi Ngezi Midlands 1.15 24.8 0.450 1,970

14

Mazvikadei

Mukwadzi

Mashonaland West

1.90

33.0

0.980

4,290

15

Biri

Manyame

Mashonaland West

1.68

28.7

0.750

3,280

16

Masembura

Pote

Mashonaland Central

0.26

22.2

0.100

440

17

Arcadia

Pote

Mashonaland Central

       

     0.52

15.0

0.120

      

    530

18 Mteri Mteri Masvingo 0.71 16.2 0.180 790

19

Mundi Mataga

Mundi

Midlands

0.37

16.2

0.100

440

20

Lilstock

Ruya

Mashonaland East

0.34

20.0

0.100

440

Total 14.35 61,710

Enacted Budget

Ministry Financials


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