Home Business Zimbabwe: Levy Increase to Speed Up Rural Electrification

Zimbabwe: Levy Increase to Speed Up Rural Electrification

by telegramnews
Seychelles Seeks to Mitigate Effects of Climate Change On the Fisheries Industry

Government is considering increasing the rural electrification levy to 10 percent to accelerate the electrification of rural communities across the country, Energy and Power Development Minister Fortune Chasi has said.

The Rural Electrification Fund (REF) gets six percent from electricity sales and the fiscal allocation by Government for projects earmarked towards developing power supplies to the rural and outlying areas.

Speaking during the commissioning of a US$80 000 Chijawi Primary and Secondary schools electrification project in Chivende, Hurungwe district last week, Minister Chasi said efforts by Government through (REF) and Rural Electrification Agency (REA) to provide electricity to all parts of the country were being hindered by poor funding.

He said despite the challenge, REF managed to electrify at least 9 000 institutions countrywide with 1 173 institutions being from Mashonaland West.

“Despite commendable progress by REF in the electrification of rural areas, the rural electrification programme has not been spared from the economic and other challenges over the past few years and inadequate funding of the programme being one of them,” said Minister Chasi.

“We hope to increase rural electrification levy to 10 percent from the current six percent. The six percent electrification levy that REF gets through electricity sales and fiscal allocation by Government are not adequate to accelerate the programme or to sustain the momentum already gained by the programme.”

Minister Chasi said Government was now focusing on electrifying rural areas in line with 17 key goals of United Nations Sustainable Development Goals (SDGs) whose main objective is to tackle poverty and protect environment.