The Zambia Institute of Chartered Accountants – ZICA has called for a swift action from Government and relevant stakeholders to stabilize the Power supply as it could help preserve jobs and support the informal sector which Is vital for the economy.
Speaking at a press briefing attended by the Zambian Business Times, Zambia institute of Chartered Accountants, President, Yande Siame Mwenye said Prioritizing the resolution of the energy Crisis should be first on Zambia’s to-do list in a bid to safeguard its economic Future and enhance the well-being of its citizens.
“As ZICA, we are concerned with the extent to which the energy crisis has Continued to affect investments in the economy. It is common knowledge that, both domestic and foreign investors seek stable and reliable power Supply as a fundamental prerequisite for establishing and expanding businesses.” She said.
Mwenye added that the frequent power outages have led to significant production losses.
“The Zambia Chamber of Mines reported that mining companies, which account For over 70% of Zambia’s export earnings, experienced production cuts of up To 15% due to power shortages in 2023. This translates into a potential Revenue loss of nearly $500 million for the sector. Agriculture, another critical Sector, has also been adversely affected. The reduced power supply impacts Irrigation systems, leading to lower crop yields. In 2023, maize production, a Staple food crop, decreased by 20% compared to the previous year, Exacerbating food security issues and increasing the cost of food imports.” She said.
Mwenye added that Small and medium enterprises (SMEs), which employ around 60% of the Workforce, is facing increased operational costs due to the need for alternative Power sources such as diesel generators further straining the livelihoods of many Zambians.
“The overall economic impact of inadequate power generation and load Shedding is profound. The Zambia’s GDP growth slowed from 4.1% in 2022 To 2.5% in 2023, primarily due to the energy crisis.” She alluded.
Mwenye further stated that unemployment rates have also increased, with the Zambia Statistics Agency reporting a rise in the Unemployment rate from 11% in 2022 to 13% in 2023 as it is attributed to job cuts in energy-intensive industries and the closure of SMEs Struggling with high operational costs.
Mwenye further stated that Immediate Interventions to diversify Zambia’s energy mix is critical not Only to mitigate the current economic impact but also to foster long-term Resilience and sustainable growth.
“Prioritizing the resolution of the energy Crisis should be first on Zambia’s to-do list in a bid to safeguard its economic Future and enhance the well-being of its citizens.” She said.
