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Tuesday, April 30, 2024
HomeNewsPower Crisis Cripples SMEs, Manufacturing Industry

Power Crisis Cripples SMEs, Manufacturing Industry

The power crisis being experienced in the country has crippled both the small to medium businesses and the manufacturing sector while exposing consumers to potential price hikes of goods and services ahead of the festive season.

In an interview with 263chat, business people operating in the Graniteside area of Harare said the power outages had put them at a disadvantage.

“We are now at a disadvantage ahead of the Christmas holiday, it is a time that we realise much activity in terms of our business. Production has reduced significantly and we had to cut our man power and resorted to night shifts in order to utilise the few hours that we have electricity,” said Joel Munzara who manufactures corn snacks

Phanuel Manikai a welder in the same area said the power outages had affected him severely saying he is now behind schedule with some clients.

“Given the current situation, I can simply say I am behind schedule, I am made to hire a generator so as to reach my targets but I am running losses through hiring and buying fuel. Power cuts have affected me heavily. At times I am made to work overtime after its restored, I hope there will be a better load shedding schedule in the near future,” said Manikai

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The manufacturing industry has also not been spared with Zimbabwe National Chamber of Commerce president Christopher Takunda Mugaga lamenting the possibility of a weakened local industry.

“The power crisis is making us lose a competitive edge to imports as our products will become more expensive than before. If there will be shortages, certainly there will be increased smuggling of cheap imports into the country thereby weakening the industry. Certainly, those goods with high demand will continue to be needed hence the business will continue to produce it even at high cost and sell it at a high cost,” said Mugaga

Denford Mutashu president of the Confederation of Zimbabwe Retailers echoed Mugaga’s sentiments saying the power outages will affect the uptake of locally manufactured goods  

“The power crisis will affect the local industry in the sense that most businesses will go for cheaper options to meet the festive season demand hence expensive local goods uptake will be reduced” Mutashu said

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