On Wednesday, the Southern African country of Zimbabwe increased its electricity prices by four times marking a major increase seen by many as a sign of tough times ahead. There has been some major blackouts in the past months and it continues to happen to a majority of the population. The change is aimed at solving the crisis by purchasing electricity from other providers and doing so for some time.
The country has been failing to supply its own electricity since the main hydro-generating plant in Kariba fell below 20 percent generation capacity. This was largely attributed to the fall in water levels among many problems.
The other problem was the depreciating value of the currency introduced as a replacement for the multicurrency system that has been holding many problems at bay. This introduction was seen by many as a knee jerk reaction to problems that needed a bit more consideration and was going to cause problems.
The electricity price jump was marked from 38 Zimbabwean cents to 162 Zimbabwean cents (equivalent to 11 US cents)
The increase will, according to authorities, provide “significantly improved electricity supply, reduced load-shedding hours and improved reliability of supply.” While a price hike was also introduced two months prior it did not do much to alleviate the problem. The hope is that this time around the company will manage the crisis by raising enough capital to buy the electricity generated by other countries.
The problem adds to other issues that have plaguing the country in recent times. The government also increased fuel prices by 25 percent, while at the same time doctors around the country have striked demanding more stable pay and decent working conditions.
The problem could be resolved soon but the main problem that affects all Zimbabweans revolves around issues that come from it’s economy and how it can be solved.