HAABAZOKA UPBEAT OVER POWER STABILISATION

STABILISATION in power supply will reduce the cost of production and in turn lead to stimulation in the consumption of goods and services as companies will no longer rely on other expensive sources of power, the Economic Association of Zambia (EAZ) has said.

Dr Haabazoka said reduced hours of load shedding will see an upward escalation of the Gross Domestic Product (GDP) as the cost of production will be reduced.

He said with reduced hours of load shedding, the manufacturing industry will revert to cheaper sources of power unlike other sources they were using such as reliance on generators and produce at a much cheaper cost.

Zesco has reduced load shedding hours from minimum 15 hours to between 10 and 12 hours daily countrywide on a rotational basis.

This development is due to the full resumption of generation at Maamba Collieries Limited thermal plant which is now operating at 100 percent following the repair and restoration of the generating unit that was out of service for some time.

The power utility company last week said it had reviewed the situation and made the decision to pass on the benefit to customers by slightly reducing the hours of load shedding.

“As power supply stabilises, we expect improved production that is going to see the GDP escalating upwards. I think that a lot of businesses have adjusted because of the load shedding by using other expensive sources of power but as supply increases, they will depend less on other sources of electricity which are expensive.

“As a result, their cost of doing business will go down. Since the cost of doing business goes down because power becomes stable and they use cheaper sources as opposed to generators, production will be enhanced,” Dr. Haabazoka said.

He said reduced cost of production would also stimulate consumption, job creation, and increased revenue for Government.

“Lower cost of production will increase companies’ earning and improve the mood in business and once that happens, we expect increased production that must stimulate consumption as producers of goods and services producedemand for raw materials.

“Some of these raw materials are finished products of other companies. This will further enhance liquidity, improve production, and create jobs. This will also translate into increased Government revenue,” he said.