The Strategic Nightmares Encountered by Zesa, Which Led to Making Certain Decisions and Initiatives.

In: Business and Management

Submitted By tsitsim2000
Words 5910
Pages 24
The paper shall look at how Zimbabwe Electricity Supply Authority (ZESA) evolved since 2000. It will also look at the strategic nightmares encountered, which led to making certain decisions and initiatives. It will analyse some of the strategies adopted and how they fit in line with the operating environment. The paper will look at background of ZESA, the general operating environment, the strategic choice taken and proffer possible advice which is not a panacea but offers pointers on how to lead change in a turbulent environment.
In 1991, the Government of Zimbabwe adopted a public enterprise reform strategy as part of a World Bank driven Economic Structural Adjustment Programme (ESAP). For the electricity sector, the Government adopted a two-pronged programme of reform a performance improvement programme (PIP) for the national utility, the Zimbabwe Electricity Supply Authority (ZESA), and a legal and regulatory reform programme for the electricity sector in general. Ten years later, significant success has been achieved in improving the utility’s performance in technical operations and customer service. However, there has been very little progress on the legal and regulatory front. This has adversely affected the utility’s financial performance, as well as frustrating the Government’s efforts in attracting private sector investment.

The Zimbabwe Electricity Supply Authority (ZESA) provides the bulk of electricity generated, transmitted, distributed and supplied in Zimbabwe. It is a statutory corporation established by an Act of Parliament – (the Electricity Act of 1985). A Board of Directors, appointed by the Minister in charge of energy, is responsible for the management of ZESA. Zimbabwe’s electricity sector comprises of five power stations with a total installed capacity of 1,961 MW (Bhagavan (ed), 1999). ZESA’S vision is to be the preferred provider of…...

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