Published: 12 September 2013

The decision by ZESA to write off debts that it is owed by its clients especially farmers is a positive move as the country prepares for an economic turnaround under the new Government.

Agriculture is one of the key sectors that will anchor economic growth and it is imperative that farmers start this process on a clean slate. The debt relief to the agriculture sector should promote sustainability in production and productivity now that the burden of repaying the loan has been taken off.

However, the relief on consumers manly depends on how far each household had gone in repaying the debt and the amount that had been charged initially.

For households with high levels of debts over $5 000 or even $ 1 000, the relief may not be significant , but for those who have managed to offset most of their debts this is a plus. The question that now stands is the sustainability of the company of the company operations.

If the company is able to sustain its operations after the action then the initiative will produce positive results however if the company fails to sustain its operations because of the relief then this may mean a rise in the rates or more power cuts.
- herald

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