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Zimbabwe’s Power Crisis Challenges Small Businesses

by Anna

In the face of frequent power outages, Ngwarayi Mushaurwa relies on a diesel generator to keep his welding business operational in Ruwa, a town southeast of Harare. He, like many others, grapples with rising costs as prolonged droughts have diminished water levels at Lake Kariba, adversely affecting electricity generation from the Kariba South Power Station, Zimbabwe’s primary hydropower source. Compounding the issue, aging infrastructure at Hwange Power Station has led to blackouts lasting up to 15 hours in some areas.

Currently, Zimbabwe generates less than 1,300 MW of electricity, falling short of the national demand of approximately 1,950 MW. This shortage forces Mushaurwa to increase charges for clients to offset fuel costs, straining the sustainability of small businesses. “We appeal to authorities to address the power deficiency so we can sustain our families,” he stated.

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Generators provide a temporary solution for Mushaurwa, yet they cannot power all necessary equipment. Many small and medium enterprises (SMEs) lack the financial resources to invest in reliable alternative energy sources. Delight Makotose, director of the SMEs International Expo, emphasized that ongoing power issues hinder local business competitiveness and called for government intervention to secure a stable power supply.

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A 2023 World Bank report estimates that Zimbabwe’s power shortages cost the economy about 6.1% of its GDP annually. Projections suggest that electricity demand could soar to 5,177 MW by 2030, primarily due to the mining sector’s growth.

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In response to the energy crisis, local independent producer Centragrid is harnessing solar energy to help meet demand. CEO Victor Utedzi highlighted that large-scale solar projects are underway to supply daytime power to commercial and industrial clients.

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Zimbabwe has made progress in enhancing power capacity, with recent expansions at both the Kariba South and Hwange stations. Mushaurwa remains optimistic that improved power supply will ultimately allow his business to flourish once again.

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