News / National
Zimbabwe power crisis grounds industries
30 Jun 2024 at 13:32hrs | Views
In Zimbabwe, recent rolling blackouts have severely impacted key industries, raising concerns about potential economic downturns and job losses. Kurai Matsheza, president of the Confederation of Zimbabwe Industries (CZI), highlighted that manufacturing firms are now operating for less than six hours a day due to prolonged power outages, some lasting up to 18 hours. Despite government attempts to downplay the severity, industry executives like Matsheza have emphasized the debilitating effects on productivity and operational continuity across sectors.
The power crisis exacerbates ongoing economic challenges in Zimbabwe's industrial sector, which has struggled with underutilized capacity for years. In 2023, the utilization of installed capacity dropped to 53%, reflecting broader economic fragility exacerbated by the recent power disruptions. A survey by CZI revealed widespread pessimism among executives, with 30% stating that the economic conditions worsened in 2023 compared to the previous year.
Christopher Mugaga, CEO of the Zimbabwe National Chamber of Commerce (ZNCC), warned of broader repercussions beyond manufacturing, including potential impacts on winter wheat farming and overall business operations. The country currently faces power cuts averaging eight to 12 hours daily, forcing businesses to reduce operations and leading to significant production losses and planning challenges.
Despite government assurances that recent power upgrades would alleviate shortages, including a US$1.5 billion expansion of Hwange Power Station, challenges persist due to drought-induced reductions at Kariba Hydroelectric Power Station. Energy and Power Development minister Edgar Moyo attributed part of the power challenges to vandalism and theft of electrical infrastructure. While new independent power producer (IPP) projects are in development, with expectations of contributing 140MW to the grid this year, the ongoing power deficit continues to strain Zimbabwe's economy and industrial sector.
The power crisis exacerbates ongoing economic challenges in Zimbabwe's industrial sector, which has struggled with underutilized capacity for years. In 2023, the utilization of installed capacity dropped to 53%, reflecting broader economic fragility exacerbated by the recent power disruptions. A survey by CZI revealed widespread pessimism among executives, with 30% stating that the economic conditions worsened in 2023 compared to the previous year.
Despite government assurances that recent power upgrades would alleviate shortages, including a US$1.5 billion expansion of Hwange Power Station, challenges persist due to drought-induced reductions at Kariba Hydroelectric Power Station. Energy and Power Development minister Edgar Moyo attributed part of the power challenges to vandalism and theft of electrical infrastructure. While new independent power producer (IPP) projects are in development, with expectations of contributing 140MW to the grid this year, the ongoing power deficit continues to strain Zimbabwe's economy and industrial sector.
Source - the independent
