- Due to severe drought, Zambia has increased daily power cuts to 17 hours, impacting electricity production and the economy.
- The IMF has cut Zambia’s 2024 growth forecast to 2.3% as critical sectors like mining and manufacturing struggle with power shortages.
- Rising operational costs and unemployment spark warnings of social unrest as businesses turn to expensive alternative energy sources.
Zambia will extend daily power cuts to 17 hours starting in September due to a severe drought that has slashed water levels in hydroelectric dams. The Kariba Dam, a key energy source, now operates at only 10% capacity, causing widespread electricity shortages that disrupt the economy.
Industries and businesses face severe challenges, prompting the International Monetary Fund (IMF) to lower Zambia’s 2024 growth forecast from 4.7% to 2.3%. The sharp drop in electricity output hits critical sectors, especially mining and manufacturing, which rely heavily on steady power.
Energy infrastructures struggle to meet rising demand. Many companies turn to costly alternatives like diesel generators, increasing operational costs. Small and medium enterprises (SMEs) risk shutting down as expenses surge, preventing them from keeping up.
Workers in urban areas, including Lusaka, adjust their work schedules to accommodate the limited hours of electricity. Welders, hairdressers, and other businesses see reduced productivity, which increases daily expenses and strains the local economy.
Social tensions grow as trade unions and employers warn of unrest unless the government resolves the energy crisis. Companies, unable to cope with the prolonged outages, lay off employees and cut wages. Rising unemployment adds to the frustrations of Zambians facing worsening economic conditions.
Zambia’s heavy reliance on hydroelectric power exposes the country’s energy sector to significant risks. Poor water management and the ongoing drought cripple electricity generation. Although the government seeks to import electricity to ease the shortage, these efforts fall short of closing the energy gap. With the next rainy season months away, Zambia faces a long period of insufficient power supply.
Household incomes shrink as rising costs of alternative energy sources increase the prices of goods and services. Businesses pass these expenses to consumers, reducing purchasing power and further slowing economic activity.
Experts urge the government to invest in energy infrastructure and diversify into alternative energy sources like solar and wind. These measures would help stabilise the power supply and reduce Zambia’s dependence on its vulnerable hydroelectric dams.
Zambia’s economy faces mounting pressure as the energy crisis creates barriers to growth. The mining sector, a vital source of revenue, struggles under the weight of frequent power cuts. The government must quickly solve the crisis while developing long-term strategies to strengthen the energy sector.
Without swift action, the drought will continue to strain Zambia’s water resources, limiting electricity production and hurting the economy. The power cuts affect industrial output, business productivity, and household livelihoods, threatening economic stability and social cohesion.