The Centre for Trade Policy and Development is concerned with the recently pronounced decision by Power Utility Company Zesco to commence daily four-hour load shedding starting from June 1, 2019 due to low water levels in the major water reservoirs in the country.
CTPD Executive Director Isaac Mwaipopo says this development will contribute to further economic deterioration.
Mr. Mwaipopo says it is sad that this is happening at a time when Zambia should be making all efforts to find ways and means to resuscitate the ailing economy.
He noted that the biggest casualties when this happens will be the Micro, Small and Medium Enterprises whose businesses are highly dependent on a steady supply of electricity because they do not have adequate capacity to easily switch to other sources of energy as compared to larger businesses.
Mr. Mwaipopo added that an immediate consequence of this will be a reduction in productivity in these businesses, which will further result in even slower economic growth of the country, given the significant role played by small scale businesses in job creation and income generation.
He said in addition, the expected loss of business due to load shedding will most likely push the business to consider laying off some workers as a way of meeting losses.
Mr. Mwaipopo said the commencement of load shedding will, therefore, further divert the economy away from the path of economic recovery adding that the effects of this move are likely to be worse than that which was experienced in 2015 when Zambia had a similar experience.
He reiterated that the situation Zambia finds itself in now raises more anxiety and has urged government to seriously consider relooking at its energy sector investment strategy as the current investment strategy does not seem to be yielding results in helping the country to avert the effects of power deficits triggered by poor rainfall.
Mr. Mwaipopo said one alternative will be to consider investing heavily in solar energy adding that Biofuels as a source of energy could be another alternative the government should consider investing in.
He said these alternatives will not only be cheaper but will also be more sustainable.
Mr. Mwaipopo has also recommended that for ZESCO to consider strategically implementing the daily four hours of load shedding in a manner that will not affect business for the MSMEs.
He noted that it will save no purpose to load shed the places where business takes place during the busy working hours when production is expected to be at its peak.
This is actually embarrassing.
Not surprising but it shouldn’t be happening. Might as well privatise it if the government can not afford to look after it.
I hold a PhD
Thanks
BB2014,2016
Africa the dark continent…
….and Zambia will be one dark sh!thole when the power rationing starts.
Whatever happened to those “alternative sources of electricity that would make us the largest exporters of electricity in the SADC region”???
Was that talk just to accumulate more debt? Ati we will be exporting electricity to our neighbours. By rationing on us???
Facts about Zambia
60% of the water resources in SADC,
An estimated 6,000 MW of undeveloped hydropower potential only 2,272 MW is installed.
The PF have accumulated a debt of almost $20billion but the same problems keep recurring
LOAD SHEDDING IS BACK
Meanwhile DRC started work in 2018 on the frequently delayed Inga 3 hydropower project, after receiving a joint bid from two previously competing consortia of investors. One group led by China Three Gorges Corp. and another including Actividades de Construccion y Servicios SA of Spain submitted a joint bid on June 6 for the project that will produce 11,000 megawatts and is predicted to cost $13.9 billion.
We will be soon importing power from DRC as we have an incompetent visionless govt led by one chancer Edgar Chagwa Lungu.
These are indeed LUNGU WASTED YEARS!!
On issues like this all chanda go on aeroplane mode, lets debate the impact of load shedding on our economy.
You can not run a modern factory in Zambia unless you are the mines who are excluded ….to add insult ZESCO is hell bent on increasing tariffs. This is what happens when leadership has no vision in other countries houses in residential areas would be encouraged to fit solar panels that supplement the power grid with surplus power like the do in Germany imagine if most houses in Avondale, Kabulonga, Woodlands, Makeni had panels on their roofs feeding into the national grid.
Whatever happened to that PF promise about never having load-shedding again by is it ailing senile Veep Bo Inonge…and they want to invest $4 billion in another hydro-electric dam instead of solar power which is available 365 days a year.
FINANCIAL INTELLIGENCE CENTER REPORT 2018 is out…now where is the popcorn!!
FINANCIAL INTELLIGENCE CENTER SAYS IT REPORTED K6 BILLION SUSPECTED DIRTY MONEY TO POLICE IN 2018
The Financial Intelligence Centre (FIC) has released the money laundering report for last year (2018).
FIC says, “During the year, the FIC disseminated 80 reports of suspected ML and TF to Law Enforcement Agencies involving suspected financial crimes valued at ZMW 6.1 billion or about USD 520 million.”
That’s a dyonko.
The supply to Malawi will be without load shedding?
Just as well since there is a strong belief that power should almost be free. ZESCO cannot invest at these prices of power. Neither can anyone since the lenders are the same. It also doesn’t make sense to import and sell at a third the price of importing. So, forward with load shedding.
Expensive loses to businesses & households from load shedding are a good lesson to everyone that you pay up to have it. Delusional to want to pay below the price. Now, sanity to pay up might dawn like in South Africa when calculations are done on the cost of gen sets, fuel, candles, burning houses, and flooded mines. This load shedding will go on till July next time. More than enough time to have come to senses.
What are you talking about tarriffs are cost reflective now and were increased by 75%…
What are the rating agencies’ scores for Zesco?
The author of this article is objective and very clear. However, its sad that the real issue of how to finance the alternative sources of power is evidently missing, and am sure on purpose. The critical analysis of this power problem in our country is not only blamed on ZESCO failure to run the business, but rather on us the citizens too. Yes, ZESCO could have learnt very serious lessons from the previous episodes of effects drought and its effect on this strategic industry and could have seriously embarked on spreading the risk by massively investing in alternative power sources like Solar, which is evidently overlooked yet very abundant all year round. Business houses, especially the bigger consumers of power should have been paying true electricity tariffs which unfortunately has been…
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Business houses, especially the bigger consumers of power should have been paying true electricity tariffs which unfortunately has been not been been the case despite almost all the generated power in Zambia is consumed by the mines.
So to effectively and permanently resolve this problem lets seriously and urgently invest in Solar Power Plants and shift the risk of hydro generation from the arid areas in the Southern part of Zambia to rain belts in the Northern circuit. Whats so difficult in doing this? Further, as a country lets learn to separate certain issues from politics, now that load shedding is before us, everyone, regardless of one’s political inclination will be affected. If the author of this article knows that the effects of load shedding have serious implications on…
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If the author of this article knows that the effects of load shedding have serious implications on SMEs, which we all agree, where does he expects ZESCO to find the investment capital given the current low tariffs? So, lets address this energy crisis in Zambia with open minds and not based on politics. Without sustainable and reliable energy, forget economic miracles.
Some media outlets reports on one of the NGOs Director saying “Being Zambian is depressing” simply because the same Director believes Donor Aid is misappropriated. I find this sentiments very disturbing and coming from someone who is economically enslaved. When you just deeply think about it, what has Donor Aid meaningfully achieved in Zambia? NIL, ZERO! The reason is that its simply not sustainable and this has made people like that Director not to think on wealth creation based on long term strategies. Yes, as long as that NGO continues to depend on other countries (foreign citizen’s money) for their NGO to survive, they should brace for more depressing times ahead. If in doubt, just listen carefully to President Trump, all those taps of “free” money, donations to Africa will be…
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If in doubt, just listen carefully to President Trump, all those taps of “free” money, donations to Africa will be closed.
Its time Africa started thinking very seriously and started creating its own wealth because from its varsity resources which those Donors dont even have! Wake and stop crying but instead Innovate, Create and start exporting and be competitive because no one cares anyway!
It’s VERY DEPRESSING to be assured of NO load shedding and barely a year it comes up! Where is power from independent producers like Maamba who promised to double on their 150 Mw? We have seen rains have become a gamble,why don’t we invest heavily in thermal(to be used in situations like this) and add wind and solar? Where is the extra power Mozambique is said to be offering cheaply??No one wants to solve this problem coz they are looking for opportunities to steal!!
But the PF rats njimbu and the rest were telling us that no more load shedding. ????
“ Because of the able pragmatic and enlightening humble wonderful and great leadership of president Edgar Chagwa lungu , which can only be god given, we are past load shedding……”
So the rats on LT were singing …..
Be wise like Dangote!
Set up your own power source for your business!
Don’t put too much hope in ZESCO!
ZESCO is now “Paya Business”
It is a sad reality facing us…
Moslems are fasting for the last 25 days with 5 more to go till Thursday.
Maybe Zesco can spare us for the next 5 days just for the fasting period.
Kaya
They just want a way to have more money through load shedding. I really hate this Government and I wish Mr. Sata M.H.S.R.I.P never died because it’s like these guys running this Government never went to school or just even Grade 1. There’s just too much illiteracy in this Government and all they think about is just how to steal money from ordinary Zambians because this is just too much foolishness.
They just want a way to have more money through load shedding. I really hate this Government and I wish Mr. Sata M.H.S.R.I.P never died because it’s like these guys running this Government never went to school or just even Grade 1. There’s just too much illiteracy in this Government and all they think about is just how to steal money from ordinary Zambians because this is just too much foolishness.
Our friends are developing or let me just say other countries are moving 1 step upwards but Zambia is just on the same problems over and over. Our problems as a country keeps getting worse and worse every day just look at this, the dollar is now at k13.00+, Millie Meal is now k100.00+, Unemployment is now high, less number of upcoming SME’s, more Toll Gates but we don’t know where the money is going, mismanagement of public funds e.t.c
If grumbling was an industry, Zambians would excel. We have too many people talking while stealing and less people working.
I need the update load shedding …in Mufulira, sections area