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Eskom’s Hunt For More Power May Risk Zimbabwe Import Deals

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Eskom Holdings SOC Ltd., the South African state-owned power utility, is looking to replace Zimbabwe as an importer of electricity from Mozambique and Zambia to help ease rolling blackouts.

Zimbabwe’s contracts with Mozambique’s Electricidade de Mocambique and Zambia’s Zesco Ltd. are set to expire at the end of the month, according to Sydney Gata, the executive chairman of the country’s Zesa Holdings Ltd. Zimbabwe is failing to pay the $6.3 million monthly import bill to Zambia, he said. A sub-optimal tariff charged by Zesa to consumers means it’s unable to generate enough foreign currency to meet its obligations.