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ZIMBABWE: DON'T HIKE POWER PRICES- CENTRAL BANK March 3, 2006
Kizza Harajah
(SomaliNet) Zimbabwe's Central Bank has stopped the Zimbabwe Electricity Supply Authority(ZESA) from increasing the electricity prices. This is because this would be dangerous for Zimbabwe which is already experiencing inflation problems.
ZESA has a debt amounting to US$334 million. It hoped that the increase in taxation would help settle the debt owed to the World Bank.and other lenders a whopping US$334-million. "There is need for a resolution to the long-term debt of US$334-million US," said Sydney Gata, ZESA Holdings chairman.
There had been earlier reports that the increase had been guaranteed by Zimbabwe's government. However, the Herald has reported otherwise. "The Reserve Bank of Zimbabwe (RBZ) has turned down the proposed tariffs by ZESA Holdings, citing their impact on inflation," the paper said.