ZIMBABWE UNPLUGGED
FOR NON-PAYMENT

Mozambique’s Cahora Bassa dam unplugged Zimbabwe for non-payment of bills. The cut off can be seen in part as putting political pressure on Zimbabwe. When Cahora Bassa was run by the Portuguese, electricity was never cut off. But Mozambique took control of the dam on 27 November.

Zimbabwe’s debt was $19 million, and in mid-December, just two weeks after Mozambique took control, Hidroelectrica de Cahora Bassa (HCB) reduced supplies to Zimbabwe from 150 to 75 megawatts. Zimbabwe still did not pay the debt, and so, on 28 December, all HCB power to Zimbabwe was cut off. HCB said supplies would be resumed only when Zimbabwe paid at least $10 million. It did so last week, and power was restored on Saturday 11 January.
Mozambique acquired a majority stake in HCB by paying $700 million to Portugal for 67% of the HCB shares was finalized. This brought the Mozambican state’s holding in HCB to 85%, while the Portuguese holding shrank to 15%.