Final Thesis

The thesis titled “Assessment of the Cost Production and Pricing Policies for the Energy Sector as a Sustainable Socio-Economic Enabler for Doing Business in Zimbabwe” by Charles Kanyunga provides a comprehensive analysis of the energy sector in Zimbabwe, focusing on the economic implications of cost production and pricing policies.

Overview
The research is motivated by the critical need for accurate and accessible information regarding energy costs, which is essential for effective energy management in manufacturing and other sectors. Kanyunga emphasizes that a well-structured energy pricing policy can significantly impact economic growth and sustainability in Zimbabwe.

Objectives
The primary objectives of the study include evaluating the current cost production and pricing policies in Zimbabwe’s energy sector, identifying the challenges and opportunities within the energy market, and proposing strategies to enhance the socio-economic benefits derived from energy production and consumption.

Methodology
Kanyunga employs a mixed-methods approach, utilizing both qualitative and quantitative data. The research draws on secondary data from various sources, including reports from the Zimbabwe Energy Regulatory Authority (ZERA), ZESA Holdings, and other relevant institutions. The study also incorporates case studies of independent power producers (IPPs) to illustrate the practical implications of energy pricing policies.

Key Findings
1. Energy market dynamics: The thesis reveals that Zimbabwe has a significant energy market, both nationally and regionally, but the business of electricity generation, supply, transmission, and distribution is not fully optimized. There is a notable gap between the actual customer base and the recorded order book.

2. Tariff under-recovery: A critical issue identified is tariff under-recovery, which poses challenges for debt repayments and financial sustainability within the energy sector. The study highlights the need for a reevaluation of tariff structures to ensure they reflect the true cost of energy production.

3. Integration of renewables: Kanyunga discusses the potential for integrating renewable energy sources into the regional Southern African Development Community (SADC) energy framework. This integration is seen as vital for enhancing energy security and promoting sustainable development.

4. Economic fundamentals: The research underscores the importance of understanding economic fundamentals in energy pricing. Factors such as population demographics, literacy levels, and infrastructure play a crucial role in shaping energy policies and their effectiveness.

Recommendations
The thesis concludes with several recommendations aimed at improving the energy sector in Zimbabwe. These include implementing comprehensive policy reforms to address tariff structures and ensure they are economically viable, encouraging investment in renewable energy technologies to diversify the energy mix and reduce dependency on traditional energy sources, and enhancing the capacity of local stakeholders through training and education on energy economics and management.

Conclusion
Kanyunga’s research contributes significantly to the understanding of energy economics in Zimbabwe. By addressing the complexities of cost production and pricing policies, the study provides a framework for policymakers and industry stakeholders to foster a more sustainable and economically viable energy sector. The findings advocate for a collaborative approach to energy management that aligns with regional goals and promotes inclusive growth.