The Zambia Association of Manufacturers (ZAM) says the manufacturing sector has continued to suffer immense effects of intermittent supply of electricity despite ZESCO implementing a six-hour phased load shedding approach.
Reacting to the decision by the power utility company to spread out the 12-hour load shedding period per day in two phases, ZAM Executive Officer, Muntanga Lindunda, lamented that most manufacturers are still bearing the burden of high production costs as a result of increased fuel expenditure to run generators.
Ms. Lindunda said in a statement to the media that the manufacturers said companies are projecting to spend colossal amounts of money on diesel every month.
“The negative impact of this on the already overburdened foreign exchange requirements cannot be understated as the country’s fuel consumption will rise. This may inevitably have an effect on the exchange rate and inflationary targets in the country,” she said.
She further said ZAM is encouraged by President Hakainde Hichilema’s efforts to address the energy situation.
President Hichilema yesterday met a technical working group constituted to address the energy crisis being experienced in the country.
Ms Lindunda has since commended the President for engaging energy stakeholders in trying to find a solution.
She has meanwhile called on government to hold accountable those responsible for planning the energy supply in the country for any shortcomings.
She also said ZAM wants to see the removal of excise duty from captive power plants which she says can be encouraged by ensuring that they supply a higher portion of their energy to the grid as an incentive.
Ms Lindunda said the government should also look into investing in other sources of energy which encourage industrialisation in the country.
“Considering the importance of the sector to economic growth, it is recommended that government increases the power supply during production hours to avoid manufacturers passing on the increased cost to consumers,” she said.
