Zambia manufacturers want exemption from electricity rationing, fear rise in production costs

Zambia manufacturers has asked government to exempt them from electricity rationing so that the industry can run without downtime.

Peter Kapala, Zambia’s Energy Minister, announced in Parliament the reintroduction of load shedding, which start today, Thursday.

Kapala announced the state of the hydrological situation at Kariba and the subsequent introduction of six-hour load shedding patterns.

The measure is a result of declining water levels in the dam to only four per cent of the water in the dam being used for power generation.

But the Zambia Association of Manufacturers (ZAM) said through its chief executive officer Muntanga Lindunda that the government should consider excusing them from the load shedding schedule as stipulated by Zesco Limited, a state owned power utility firm.

Lindunda indicated that the manufacturing industry was an important sector to economic growth of the country.

In a statement in Zambia’s capital Lusaka, she said government should setup a committee comprising stakeholders from Zesco and the Zambia Association of Manufacturers to discuss any challenges that may occur in relation to energy supply.

“The Association is deeply concerned with the pronouncement as it threatens productivity in the manufacturing sector.

“Notably, the manufacturing sector has already been affected by the rising cost of doing business as a result of an increase in fuel prices,” she said.

Lindunda pointed out that the introduction of load shedding would not only affect production due to lack of power but increase the cost of production as companies have to use generators to supplement the challenges facilitated by the energy deficit.

She said the sector was still in the process of adopting to cleaner technologies such as solar, but the adaptation rate was still low as a result of the huge costs associated with producing greener energy.