THE Zimbabwe National Chamber of Commerce (ZNCC) says the temporary shutdown of two units at the Hwange Thermal Power Station will have severe consequences for businesses, particularly the manufacturing sector.
The Hwange Thermal Power Station is currently the country’s largest electricity generation source.
It overtook Kariba Hydropower Station in 2023, after new generation units came online, while the latter saw its water sources drastically reduced owing to climate change.
Power utility Zesa has announced the temporary shutdown of the Hwange Thermal Power Station’s Unit 7 for scheduled ‘Class B’ maintenance from March 2 to March 29.
Additionally, the station’s Unit 6 will be taken offline for statutory maintenance from March 15 to May 14.
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“The 2024 State of Industry and Commerce Survey reported that at least 8% of the potential output is lost through power outages,” ZNCC president Tapiwa Karoro told NewsDay Business.
“The temporary shutdown of Unit 7 at Hwange Power Station, followed by Unit 6, will likely have significant implications for the business sector, particularly manufacturing, which is heavily reliant on stable electricity supply.”
He said the potential impact included a disruption in production schedules and further reduction in output.
“Manufacturers may have to rely more on expensive alternatives like diesel generators, increasing production costs and potentially raising the prices of goods; Industries that require continuous power, such as mining, steel production and agro-processing may face efficiency losses, making local products less competitive; Further power shortages can slow down production, affecting supply chains and potentially leading to shortages of essential goods in the market; and Persistent power challenges deter potential investors, as energy security is a key factor in business decisions.”
The ZNCC boss said it would be difficult to achieve the projected growth rate of 6% this year, if power supply remained a challenge, despite the recovery in the agricultural sector.
According to a survey by our sister paper, Zimbabwe Independent, companies are already spending as much as US$300 000 per month on fuel for generators during 18-hour daily power cuts.
“Power cuts mean businesses must either find alternative energy sources or shut down,” economist Vince Musewe said.
“Either way, this raises the cost of doing business and disrupts supply chains, ultimately, prices go up to cover increased costs, or companies resort to retrenchments.”
He said power was at the centre of any productive economy and that without it, the economy would falter.
