Urgent Need for Management Review & The Need To Assess Impact on Households and Small Businesses
By Bernadette Deka Zulu
Founder: Shaping Futures Zambia
Introduction
I recently visited Harare and observed what at that time, I could call a puzzling situation. Zimbabwe, like Zambia, relies on the Kariba grid for power, with an equitable distribution. Despite the well-documented water level challenges at Kariba, Zimbabwe does not experience frequent power outages as we do. During my three-day stay, I encountered only a single power cut lasting about 45 minutes or less.
While we acknowledge the effects of climate change and the current drought, it is surprising that we have have continued to attribute our power issues solely to these factors. Both countries are equally affected by the drought, and we share Kariba as our primary electricity source.
Power Cut Effects
The current power crisis in Zambia has had far-reaching effects on both households and small businesses. The economic, social, and psychological impacts are significant, highlighting the urgent need for sustainable solutions to the energy problem
One must wonder how long it will take for both ordinary citizens and businesses to recover from this setback, both socially and economically. This situation is largely of our own making, not entirely a result of the climate crisis. We must take responsibility.
Fact Checks
While appreciating that Zambia’s energy sector is predominantly reliant on hydropower, with the Kariba Dam being a significant source of electricity-coupled with the ongoing drought have led to critically low water levels, severely impacting power generation; there are also some facts that may lead to our population believing that there has been severe mismanagement of electricity supply amid increased investments and capacity coming from Independent Power Producers
(IPPs), who have over the years continued to expand and modernize the energy infrastructure. The Maamba Collieries being on of them, adding thermal power plant which has also added significant capacity to the grid, helping to mitigate the effects of drought on hydropower generation.
Other facts include:-
-In 2023, the Itezitezi dam was 99% full. That water alone was enough to last us three years generating power at full capacity.
-It is said that Ndola Energy has so far added 105 Mega Watts to the National Grid.
Economic Impact on Households
The crisis has significantly increased living costs for households. Talk of food spoilage, high food expenditure to mitigate spoilages, water trouble in especially highly populated communities-imposing a health threat that may hit families in the near future.
Moreover, the inability to use electrical appliances has disrupted daily routines and reduced the quality of life by a large margin.
Social Impact on Households
Studies have shown a significant increase in stress and anxiety levels among those affected by the blackouts. The disruption of daily activities, such as cooking and entertainment, has led to a decline in overall well-being. Additionally, the lack of reliable power has hindered children’s education, for many reasons.
Impact on Small & Medium Sized Businesses
Small businesses have been particularly hard-hit. The outages are nolonger frequent, but nearly perpetual and this has led to reduced productivity and increased operational costs.
Most of these businesses cannot afford generators, therefore are forced to halt operations leading to loss of revenue. The food industry, in particular, has suffered, with perishable goods going to waste due to lack of refrigeration.
Even more regrettably is bread has become scarce, showing a poignant example of the crisis’s impact is a local businesses.
Broader Economic Implications
Immeasurably, there is a slowdown in industrial and agricultural production. increased cost of alternative energy sources has is leading to higher production costs, and the consumers (ordinary citizens) are bearing the burdens, across board.
In the long run, the above have severe economic consequences that may contribute to inflation and reduced purchasing power among the population.
Conclusion
It is crucial to recognize that our problems may be self-inflicted rather than purely environmental. We might still be exporting power, even as our people continue to suffer severe consequences, our businesses suffering heavy financial losses, our people lacking basic needs such as water to drink, as already the case the few with boreholes are exploiting the situation by selling running water- putting a price by /bucket.
Talk of hospitals suffering from machinery failures due to power shortages, leading to premature deaths- deaths that should not have to occur.
The profound impact of the management of power supply on our households and communities, as well as businesses of all sizes, is undeniable.
Something got to change.
PS/ I look forward to reading well assessed reports/research papers on the impact that this energy crisis has posed on our households/communities/businesses/country and how long this impact will affect both the current and near future economic sphere in Zambia.
I believe in our local Think Tanks to come through on this.
For interactions on the topic, please feel free to write to bernadettedekazulu@gmail.com
Author
