The Economy of Zimbabwe
Power Cuts and Debt Arrears
Hydropower shortfalls during droughts and ageing plants cause long blackouts, while unpaid debts block access to new international loans.
Structural constraints.
Power
The Kariba dam supplies much of the country’s electricity, but low water levels reduce output.
Blackouts
Long load-shedding hurts factories and homes.
Debt
Unpaid arrears to international lenders prevent new financing.
Engagement
A dialogue on clearing arrears and reforms has begun with lenders.
A dark factory
A factory shuts several hours a day because of power cuts.
Ignoring energy in growth plans
Without power, industry stalls.
Key takeaways
- Kariba hydropower is key.
- Blackouts are common.
- Arrears block new loans.
- Dialogue with lenders is under way.
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