ZESA Holdings and South African power utility, Eskom, have signed an inter-utilities memorandum of understanding which paves way for renewed negotiations for power supply contracts.

The inter-utilities MOU is expected to give the local power utility a new lease of life regarding the importation of power.

Executives of both firms attended the meeting showing the seriousness of the relationship being forged by the power utilities with Minister of Energy and Power Development Dr Samuel Undenge saying Eskom has excess power which the local economy can benefit from.

South African ambassador to Zimbabwe Mr Mphakama Mbete said energy is a key enabler, hence the need for neighbouring countries to collaborate in critical sectors of the economy.

ZESA Holdings is importing power from South Africa and Mozambique which has pushed the firm’s debt close to US$80 million though efforts are being made to reduce part of the debt with US$6 million having been paid last week.