Harare – China has lent Zimbabwe $319m to ease electricity shortages by expanding its Kariba hydropower station, the country’s Finance Minister, Patrick Chinamasa, has said.The project will take four years to complete and increase Kariba’s capacity by 300MW, he said.Zimbabwe often faces power outages, affecting households and businesses.The deal highlights the ‘Look East’ policy Zimbabwe adopted after falling out with Western powers.Chinamasa signed the deal with the vice-president of the state-owned China Exim Bank, Zhu Hongjie.“This should go a long way in reducing power outages... For us the energy deficit has hamstrung the growth of our economy,” Chinamasa said.Zimbabwe produces about 1,200MW of electricity, but peak demand is 2,200MW.The loan will attract annual interest of 2 per cent and has a repayment period of 20 years, Chinamasa said.China was a strong supporter of Zimbabwe’s independence struggle against British colonial rule.The two countries strengthened ties after the European Union and US imposed sanctions on President Robert Mugabe and his inner-circle after Zimbabwe’s 2002 elections.In March, the European Union suspended sanctions against 81 officials and eight firms in Zimbabwe.
