By MAIMBOLWA MULIKELELA  –
ZAMBIA’s manufacturing sector will this year record the lowest growth rate in 10 years mainly due to the electricity crisis which has hit the country.
On average, the manufacturing sector has been recording positive yearly growth.
Zambia Association of Manufacturers (ZAM) president Roseta Mwape-Chabala said the manufacturing sector would this year record the lowest growth rate in 10 years because of high production costs arising from the energy crisis.
Ms Mwape-Chabala said this year had been the toughest for the sector because of the energy crisis and depreciation of the Kwacha against the United States dollar.
“The manufacturers have incurred high production costs since companies have to migrate to generator sets for the time they have no electricity. Competitiveness in the sector will be a challenge. Delivery schedules cannot be met as a result,” Ms Mwape-Chabala said.
She said the decision by Zesco to limit electricity generation and increase load-shedding to at least eight hours a day on a rotational basis for both commercial and residential customers, has impacted negatively on the sector.
She said an increase in power outages has impacted on all aspects of the economy, contributing to slower economic growth this year and higher production costs.
Ms Mwape-Chabala explained that the bulk of the manufacturing sector, import inputs and that have been affected by the depreciation of the local currency which tripled the cost of production.
She said the manufacturing sector as result, had recorded about 40 per cent loss of production due to the current power outages.
Ms Mwape-Chabala said they would be loss of revenue for both industry and the Government.