The Sunday News
Rutenda Nyeve, Business Reporter
PLAYERS in the industry and commerce sector have said the continued power cuts could derail their 2022 economic growth targets due to lost production time.
This follows increased load shedding due to the failure of one of our units at Kariba Power Station over the past weeks. Unit 6 went out of the grid last week which produces about 125 megawatts. There were also problems with generation from Hwange Power Station where for the major part of last week, the station was running on two units. While some of these challenges where addressed leading to the generation rising to 407 megawatts from Hwange Power Station, the winter demand continues to hamper power supply in the country.
Zimbabwe Chamber of Commerce Matabeleland Regional Vice President Mr Louis Herbst said the chamber had tried to engage ZESA following an outcry from both its members and nonmembers but to no avail.
“Indeed we have had many complaints from our members and non-members alike for that matter (power cuts) and as a chamber we had over two weeks ago written to ZESA and requested an audience with them in order to better understand the reasoning behind the load shedding or faults causing the disruption, whichever the case. Unfortunately, the initial response we received was that their heavy schedule does not permit a meeting with us as yet.
“We further requested the meeting be arranged for a date and time suitable and convenient to them but again we are yet to receive a response or guidance from them. We shall no doubt persist until we can get this meeting in order that we may better understand the reasoning and advise our members accordingly. Until such time, it appears we are all in the dark on the matter,” said Mr Herbst.
Local manufacturer in the fabrication sector Mr Isheanesu Mpariwa said the increase in load shedding has a greater impact on the production side of their sector.
“Many businesses have reverted to alternative power sources such as fuel-powered generators which have become even more expensive to operate given the increase in global oil prices that has rippled to the local US-dollar pump prices due to power supply failures.
“As a result, a number of companies suspended shifts owing to rolling power cuts amid fears the use of expensive diesel generators will increase the cost of production by about 20 percent delivering the final blow to the already troubled industry,” he said.
Economist Dr Zwelithini Siziba said, “The increased load shedding will definitely affect industry production targets as some production lines are too costly to run on a generator.”
He added that this will affect inflation as increased cost of production through increased fuel procurement for generators will be pushed to the consumer, causing cost-push inflation.
However, in what would be a major boost to the country’s industrialisation and modernisation journey, Hwange Thermal Power Station Units 7 and 8 are almost complete with 88,29 percent of work having been done while the commissioning of auxiliaries has started
The two units are expected to add 600 megawatts to the national grid when completed, in what would help end power cuts and also satiate the appetite for consistent energy supply to mining and manufacturing companies and lure foreign direct investment.
The Government has this year set economic growth projection at 5,5 percent, underpinned by higher output in mining, manufacturing, agriculture, construction as well as the tourism sector.
@nyeve14
