Load shedding hits manufacturing sector

Load shedding hits the manufacturing sector in Zambia.

Jan11^th 2023.

By Raphael Banda

The Zambia Association of Manufacturers (ZAM) has noted the efforts that the Government is putting in place to mitigate the challenges associated with load shedding in the country.

In the statement, the association observed that hydro remains the main source of energy in Zambia contributing about 81.5% to the total national installed electricity capacity as of 2021.

However, the Association expressed concern with the inconsistencies in the communication regarding the number of hours of load shedding and adherence thereto Load shedding came into effect on 3rd January 2023 .

“ On 8th January 2023, another statement was issued announcing a reduction in the power outage period from 12 hours to 6 hours effect 9th January 2023.Despite this split in the power outage period, the effect on the sector is still immense. Load shedding has increased production costs for most manufacturers in form of an increase in fuel expenditure to run generators, as some companies project to spend millions of Kwacha on diesel every month,” the statement read in part.

The ZAM pointed out that the negative impact of this on the already overburdened foreign exchange requirements cannot be understated as the country’s fuel consumption will rise. This may inevitably influence the exchange rate and inflationary targets in the country.

“We are encouraged by the interventions by the Head of State in engaging stakeholders and would

further ask Government to hold accountable those responsible for planning the energy supply in

the country for any shortcomings so we may plan for undisrupted electricity supply in the country

in the future,”

ZAM further encouraged Government to implement policies to encourage energy

production by the Private sector.

The manufacturers hub explained that while they commend Government for reducing the export of electricity to other countries, they would ask for a total suspension of this in the interim to stabilize the local requirements of our industries.

Ends//Rb

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