Page 100 - 40th Summit Brochure 2020

SADC MEDIA AWARD WINNER FOR PRINT JOURNALISM

Inadequate power supply costing SADC GDP growth

By Prosper Ndlovu

THE YEAR 2019 has not been a good one for Southern Africa in terms of power generation as deficits
in supply persisted across member states with severe consequences on economies and ordinary people’s
livelihoods.
Most countries within SADC, except Mozambique, which is producing a surplus, are still struggling to
meet their installed power generation capacities.
Statistics from the Southern African Power Pool (SAPP), indicate that by midyear 2019, Angola, for
instance, was producing 2500MW of electricity against 3129MW capacity while Botswana stood at
459MW compared to 927MW installed capacity.
The DRC was producing 1 076 MW yet installed generation capacity stood at 2457MW while
Eswatini was generating 55MW against installed generation capacity of 70MW.
Similarly, Lesotho was generating 70MW against installed 74MW capacity with Malawi making it at
270MW against the 447MW installed capacity.
Namibia was operating at 354MW failing to meet the installed generation capacity of 749MW while
South Africa was producing 46461MW against its 52096MW installed generation capacity and Tanzania
was producing 1221MW against the 1461MW installed capacity.
This reduced generation capacity is working against the SADC Industrialisation Strategy and
Roadmap (2015-2063). In Zimbabwe reduced power supplies have forced the power utility, ZESA, to
implement a tight load shedding regime that has seen some places going for up to 18 hours without
electricity. This has adversely affected businesses and household consumers.
Bulawayo Chamber of SMEs chairperson, Mr Energy Majazi, said power cuts are now threatening 97
livelihoods of ordinary people as production has been reduced drastically.
“We have been hit hard. This is where we get our day to day fares for transport and fees for our
children.
“We are living from hand to mouth and we are now like dogs that eat once a day in the evening. The
situation is critical because of these power cuts,” he said.
Mr Majazi said entrepreneurs in the manufacturing sector, particularly those in the furniture and
clothing sectors, were the worst affected as they used electric machines.
Large scale businesses have been affected too with escalating costs arising from use of alternative power
sources like generators.
These, among other macro-economic factors, have been cited for the projected minus six percent
economic contraction by end of 2019, with industry capacity utilisation seen dropping to about 30 percent
this year from 48 percent in 2018, according to the Confederation of Zimbabwe Industries.
The same is being experienced in South Africa, SADC’s most industrialised member where
Bloomberg reported that power outages have disrupted businesses, particularly small- and medium-sized
firms that cannot rely on backup power generators.
The power generation challenges in SA affect neighbours such as Namibia, Botswana, Lesotho,
Swaziland and Zimbabwe who often turn to Pretoria for power imports.
Daily power cuts have also become a norm in Zambia and this is affecting households, farmers,
small businesses and big industries including established mines. Power rationing, unannounced power
cuts and fuel shortages have had a huge impact on Zambia’s economy, with both domestic and
commercial customers struggling to get used to the new order, local media reports show.
Zimbabwe and Zambia rely heavily on hydro power from Kariba Dam which has been drastically
reduced due to low water levels this year. The thermal option has also been weakened by low investment
in new projects as existing plants constantly break down due to obsolete equipment.

(The Chronicle, Zimbabwe; 14 October 2019)
https://www.chronicle.co.zw/inadequate-power-supply-costing-sadc-gdp-growth/