IN September 2023, OK Zimbabwe noted with grave concern how incessant power cuts were affecting them financially. The large retailer said the use of generators increased their aggregate expenditure as they had to purchase fuel to sustain them during business operating hours.
Recently, Nash Paints Zimbabwe, a major paint manufacturing company, also stated that their head office and main operations plant had halted operations due to loadshedding.
The CEO of Nash paints, Tinashe Mutarisi revealed in his address to staff that the company was reeling due to power cuts and had halted operations and send some workers home.
This article will attempt to establish the importance of prioritising power on industry to ensure sustainable costs and continued operations.
The position of ZPC
The Zimbabwe Power Company (ZPC) released a press statement stating that the Hwange generation plant incurred a major fault and that loadshedding would continue for 30 days. It is imperative that the power generating company seriously considers the impact loadshedding has on business.
The stagnation in production and discontinued operations may ultimately affect business operations and profitability. Most businesses have highlighted the high cost of using generators, which run on fuel, to sustain operations.
When business operations are affected, the impact is dire. It can lead to company closures, and thereby an increase in unemployment levels.
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Downside of incessant power cuts
The availability of power in industry helps to boost production, and ultimately increase the gross domestic product and national income levels.
It is critical for the Zimbabwe Power Company to consider the ripple effects that are incurred when industries are forced into closure or to reduce operations due to increased costs.
Advice on businesses
In the medium to long term, it is important for businesses to look at alternative sources of power, such as solar energy. While these investments are capital intensive, companies need to look at the long-term gains.
The business environment will require adaptability.
The Zimbabwe Power Company seeks to eventually achieve uninterrupted power supplies in the future, and is looking at measures to achieve this.
Nyatanga holds a Bachelor’s degree in Banking and Investment Management. — +263 784 909 184 or [email protected].
