LOAD SHEDDING TO AFFECT MSMES - CTPD

MICRO, Small and Medium Enterprises (MSMEs) will be the worst hit by the planned load shedding because they are highly dependent on a steady supply of electricity, the Centre for Trade Policy and Development (CTPD) has said.

And the centre has warned that the situation would adversely affect productivity and economic growth of the country.

CTPD executive director Isaac Mwaipopo said they were concerned with the recent announcement by Zesco to start a daily four-hour load shedding programme from June 1, 2019 due to low water levels in the major water reservoirs in the country.

“An immediate consequence of this will be a reduction in productivity in these businesses, which will further result in even slower economic growth of the country, given the significant role played by small-scale businesses in job creation and income generation,” Mr Mwaipopo said

Mr Mwaipopo said the result of this development would contribute to more economic deterioration.

Mr Mwaipopo said the expected loss of business due to load shedding would most likely push the business sector to consider laying off some workers as a way of meeting losses.

He feared that load shedding would also divert the economy from the path of economic recovery.

“One alternative will be to consider investing heavily in solar energy. Biofuels as a source of energy could be another alternative the government should consider investing in.

“These alternatives will not only be cheaper but will also be more sustainable,” he said

He said Zesco she consider strategically implementing daily four hours of load shedding in a manner that will not affect business for the MSMEs.

Mr Mwaipopo said the logical thing to do would be to consider load shedding these areas during off peak periods