Zimbabwe’s $616.6m ZESA Debt Burden Comes under Senate Scrutiny

Zimbabwe’s Senate has questioned whether restructuring Zimbabwe Electricity Supply Authority's (ZESA’s) US$616.6 million legacy debt can solve the utility’s financial problems when public institutions still owe it about US$188 million.

The issue came up during Senate debate on Zimbabwe’s energy security report, with Senator Nonhlanhla Mlotshwa pointing to unpaid bills from Government ministries, local authorities and parastatals as another financial burden facing the electricity utility.

The two figures show that ZESA is dealing with a large historical debt burden at the same time that institutions using its electricity have accumulated substantial unpaid bills.

Mlotshwa said the situation must be dealt with alongside any plan to restructure the legacy debt.

“Restructuring the debt cannot become an excuse to ignore the structural weakness that created financial distress,” she said.

Old debt meets unpaid electricity bills

ZESA’s legacy debt of US$616.6 million was identified in the energy security report considered by the Senate.

Mlotshwa supported proposals to restructure the debt but said the arrangement would not deal with the problems that continue to affect the utility’s finances.

She pointed to the US$188 million owed by public institutions as an immediate issue requiring action.

“Government cannot demand that ZESA becomes financially viable while Government institutions themselves are among the major debtors,” she said.

The senator said the unpaid bills were placing further financial pressure on ZESA as it needs money to maintain its network, buy equipment and obtain critical spares.

Her position was that institutions consuming electricity should make provision for their bills.

“If Government departments consume electricity, they must budget for electricity. If parastatals consume electricity, they must pay,” she said.

The debt owed by public institutions was about US$188 million as of February 2026. It covers ministries, local authorities and parastatals.

Financial repair requires more than debt restructuring

Mlotshwa also pointed to problems inside the electricity sector that she said must be addressed if ZESA is to avoid another unsustainable debt burden.

These include revenue collection, electricity losses, infrastructure management, vandalism and procurement challenges.

She also included Government debtors among the issues requiring action.

“We must deal with revenue collection. We must deal with electricity losses. We must deal with efficient infrastructure. We must deal with vandalism. We must deal with procurement, and we must deal with Government debtors,” she said.

The senator also questioned the contradiction between complaints about ZESA lacking money for spares and the accumulation of unpaid electricity bills.

“We cannot continuously complain that the utility does not have money for spares and allow hundreds of millions in bills to remain unpaid,” Mlotshwa said.

Her comments put the focus on how ZESA can prevent new financial pressure after its old debt is restructured.

Mlotshwa said professional management and accountability were also needed throughout the electricity sector.