• Some companies utilized gen-sets, but were hit by no less than K50, 000 additional cost of production.
• this counters efforts to meet national objectives
• Early warnings will allow manufacturing companies to be prepared and avoid damage.

Zambia Association of manufacturers (ZAM) has disclosed that manufacturers made losses on sales of not less than K500, 000, with some companies reporting loss as high as K2 million from the 8th October Power Cut.

ZAM Chief Executive Officer (CEO) Florence Muleya further reveals that some companies experienced damages to their raw materials and machinery.

Mrs. Muleya says in pursuit to cover up for the losses, some companies utilized gen-sets, but were hit by no less than K50,000 additional cost of production incurred through procurement of diesel.

She says this counters efforts to meet national objectives of increasing the share of general manufacturing contribution to Gross Domestic Product to 36.12%, and increasing exports of manufactured products as a share of merchandise exports to 71% by the year 2030 as stipulated in the Vision 2030.

“The manufacturing sector has strong linkages with the rest of the economy. Hence, effects on the sector could have dire impacts on the rest of the economy such as reduced distribution and market sales for smaller entities, slower industrialization and job creation, as well as reduced availability of supplier development programmes which remain key agendas for the Government. Said Mrs. Muleya.

Meanwhile, Mrs. Muleya has recommended an increase in the forecasting capacity by the power utility company, as well as adopting early warning to the manufacturers.

The ZAM CEO stated that “In a case where, nothing can be done to avoid a power cut, early warnings will allow manufacturing companies to be prepared and avoid damages, as well as ensure alternative sources of energy are readily available for their production lines.”

On Friday 8th October 2021 the Zambia experienced a 5-hour blackout from 18:00 hours to 24:00 hours.

She however pointed out that in the past year, the Government of the Republic of Zambia through ZESCO Ltd have made great strides to improve electricity supply.

Mrs. Muleya stated that ZAM commends the efforts that have been put in place to improve electricity supply and indeed reduce the load management experienced over the years.