The Rural Electrification Fund (REF) also known as the Rural Electrification Agency (REA) is a statutory body governed by the Rural Electrification Fund Act (chapter 13:20) with its Head Office situated at Megawatt Building, 6th floor, 44 Samora Machel Avenue, Harare. Its background is that post-independence Zimbabwean government gave high priority to rural infrastructure development programmes, which include the rural electrification programme. The policy framework was a deliberate intention to correct the imbalances between urban and rural electrification with the ultimate goal of socially and financially empowering the rural communities and enhancing their capabilities in their contribution towards economic development of the country
It originated as a Rural Electrification Unit within ZESA consumer service department in 1997. The rural electrification Unit was mandated to implement the policy framework that intended to correct the imbalances between urban and rural electrification. The creation of the Rural Electrification Unit reaped dividends in that there was a marked increase in the number of electrified rural institutions compared to the period before the Unit was set up. Continued deliberations on the energy policy framework culminated in the enactment of the Rural Electrification Fund Act and the electricity Act respectively at the beginning of 2002.
REA`s vision is to become the pre-eminent vehicle for Zimbabwe`s rural Energy infrastructure development that mobilizes and harnesses its resources and those of other developmental organizations. Its mandate is facilitating rapid and equitable electrification of rural areas of Zimbabwe through identification of rural electrification and projects in conjunction with stakeholders, ensuring cost effective and efficient implementation of projects, creation of a centre of information and excellence on rural electrification practices by conducting research and keeping abreast of technological developments in rural electrification programme.
REA is not a ZESA Holding subsidiary. It is a stand-alone entity created through an Act of Parliament; Act (chapter 13:20) of 2002. REA is run by a fully-fledged board which reports directly to the Ministry of Energy and Power Development.
Our target as REA, is to provide universal access to modern energy services in all the rural areas of Zimbabwe by 2030. To achieve our target, we are exploiting all energy resources available in Zimbabwe such as solar and biogas energy to complement grid electricity and speed up rural electrification programme. We are certain that by 2030, all public institutions, households and farming communities will have access to one form of energy or the other.
The Rural Electrification Programme (REP) commenced in earnest in 1983 when the then Electricity Supply Commission (ESC) earmarked forty-eight (48) growth points for electrification among them Mubaira, Mutoko, Murambinda and Gutu. The pace of project implementation was slow and characterized by underfunding and inequitable project distribution, in essence, the resultant poor return on infrastructure investment emanating from the high electrification costs and low load regimes associated with the rural communities, discouraged ESC management from undertaking those projects
However, in February 1989 the idea of a countrywide rural electrification programme was mooted. This idea culminated in the 1995 African Development Bank funded Rural Electrification Master Plan Study that recommended: The extension of the grid network to 415 rural service centres, business centres and growth points that would act as grid network hubs. Dedicated funding arrangement through an electrification levy; and Promotion of productive use of electricity by the projects selected for rural electrification.
In 1997 ZESA’s Consumer Services Department established the Rural Electrification Unit to dedicate its efforts towards the rural electrification activities. In March 2001, the ZESA Board passed a resolution to embark on the Expanded Rural Electrification Programme (EREP). The resolution gave an unprecedented impetus to finalizing the electricity industry reform draft white paper, which culminated in the enactment of the Rural Electrification Fund Act and the Electricity Act respectively at the beginning of 2002. The legal framework created an enabling environment that promoted and sustained the Rural Electrification Programme in that the Rural Electrification Fund builds the grid network infrastructure and the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) collects the levy, operates and maintains the developed infrastructure.
(A Subsidiary of the Rural Electrification Fund)
Hotspeck Enterprises (Pvt) Ltd is a Private Company incorporated under the Companies Act Chapter 24.03 and is wholly owned by the Rural Electrification Fund (REF) of Zimbabwe. It was established in September 2012 to supply electricity transmission poles to Rural Electrification Fund.
Hotspeck has two Strategic Business Units (SBUs) namely the Pole Plant and the Contracting and Consulting Services (CCS). The pole plant is a fully computerized state of the art technology in pole treatment. This makes it a unique pole treatment plant in Africa and Zimbabwe in particular. It as the capacity to produce about 20 000 poles per year.
CCS was formed in January 2008 as the Commercial unit to provide consultancy and projects implementation competencies to cater for customers with ready cash who do not want to wait for the subsidized roll out programs which usually takes long to implement. These rural projects include electricity grid extension, renewable technologies, projects planning and implementation among others. Contracting and Consulting Services department charges commercial market rates and does work in the time frame required by the project beneficiary.
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