• Sun. May 26th, 2024

ZESA, Management Services sign JV to establish US$25mln cable manufacturing plant

By Stephen Chandisareva

HARARE – ZESA Enterprises signed an agreement with Management Services for setting up a cable manufacturing plant worth over US$25 million in Harare.

This transformative initiative, spearheaded by ZESA Enterprises (Pvt) Ltd and Management Services, marks a significant milestone in the country’s quest for energy sustainability and technological advancement.

“The nation is advised that in support of the initiative to promote investments and access to reliable and affordable energy. Cabinet approved ZESA Enterprises (Pvt) Ltd to conclude an agreement framework with Management Services Company establishment of a US$25 million transmission cable manufacturing plant in Harare,” reads the cabinet press brief.

“The joint venture project will enable the transfer of technology and expertise to ZESA Enterprises and its staff. The project will ensure availability of power cables for the revitalization and expansion of transmission and distribution networks to meet national targets for increased access to electricity.”

According to Cabinet, the project will also have a major positive impact on downstream sectors and participants in the value chains for cable manufacture and mining.

“The local copper mines will have a local market for their produce, and there will be significant employment opportunities for Zimbabweans,” further reads the report.

“The value chains will also contribute to increased gross domestic product, through local, regional and continental cable and related product sales which will also include exports.”

However, CAFCA, Zimbabwe’s only cable manufacturer, recently expressed worries about the dwindling supply of local scrap copper because it does not have enough foreign currency to import the metal and cover the gap.

Experts say the Joint Venture Agreement for the cable manufacturing plant in Zimbabwe has the potential to significantly benefit the energy sector, promote economic growth, and drive technological advancement.

But, warned that careful planning, effective risk management, and a focus on sustainability are essential to ensure the success and long-term impact of this venture.

 

By ETimes

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