HomeEditor's ChoiceA Silent Struggle for Small Businesses Amidst Zambia's Power Crisis

A Silent Struggle for Small Businesses Amidst Zambia’s Power Crisis

This story was made possible with the support of the Pulitzer Centre.

The ongoing power crisis in Zambia, primarily driven by drought, has caused widespread disruptions, silently but significantly affecting businesses and livelihoods. On a sweltering Sunday morning, Cindy Sipula embarks on a mission to uncover the true impact of load shedding on small businesses in Zambia, with a particular focus on Lusaka District.

From hardware store owners to hairdressers, small business operators are grappling with the challenges posed by unstable electricity, which disrupts the use of essential commercial equipment.

As I set out on my fact-finding mission in one of Lusaka’s busiest compounds, I am struck by an unexpected stillness. The usual buzz of activity has given way to an air of lethargy, as a shadow of boredom hangs heavily over the people.

Silent streets in Kalingalinga

Kalingalinga, a low-income, high-density settlement in Lusaka District, is typically renowned for its vibrant activity. It is home to some of Zambia’s most skilled welders and carpenters, who work together on projects catering to clients across the economic spectrum—an intriguing story I uncovered during a recent visit, but one for another day.

Today, however, the narrative shifts. The once-bustling sounds of welding sparks, buzzing transformers, and whirring motors have faded into an unsettling silence, as machines lie dormant, stilled by the power crisis.

Driving through Kalingalinga, my attention is drawn to a man, seemingly in his early 40s, reclining on a pile of metal that appears to be a fully fabricated gate. A cigarette dangles from his lips as he takes a smoke break inside a welding shelter.

I am later introduced to James Mulenga, a welder who has been in the trade for over 10 years. Mulenga has spent most of his life living and working in Kalingalinga alongside his business colleagues.

“I left home at 6 a.m. to find electricity so I could complete an order for a metal gate a client placed over a week ago,” Mulenga shares.

“I didn’t even go to church today, hoping to finish this work since it’s overdue, but alas, there’s still no electricity,” he lamented.

Josephat Banda, another welder in Kalingalinga, echoed Mulenga’s frustrations. Banda, a father, emphasized that the increased hours of load-shedding have affected not only small businesses but also households and the education sector.

“Children, especially those preparing for exams, are struggling to study at night without electricity. My own children can no longer study for long hours or even enjoy watching their favorite television programs due to the power outages,” Banda explained.

The two welders revealed that they had gone three consecutive days without electricity, leaving them unable to earn an income or sustain their livelihoods.

“This power crisis is undoing everything we’ve worked hard to build as a business. Delayed work means that by the time power is restored, some of our clients will have moved on to more reliably powered welders in the industrial areas or markets where generators supplement electricity,” Banda said.

In a plea to the government, the welders called for support in the form of alternative power sources for small businesses like theirs in Kalingalinga.

Banda acknowledged the recent government initiative to place diesel generators at major markets but urged that this support be extended to other sectors of the economy, including small-scale welding businesses.

Josephat Banda (L) and James Mulenga (R) explaining how they have been impacted by load shedding. Picture by Andrew-Knox Kaniki.
Economic ripple effects

Across from the welders, a hardware store owner reported plummeting sales in grinders and other welding machinery. The store owner, speaking on condition of anonymity, reported a sharp decline in sales since load-shedding peaked at 21 hours per day.

“Customers are now hesitant to invest in equipment like this because the electricity supply is so unreliable,” he explained, citing reduced profits and a growing stockpile of unsold inventory.

“Most of our income comes from replaceable tools and parts, such as grinding discs, pump washers, and other components that wear out quickly. However, we’ve seen fewer customers, especially welders, who used to buy a new grinding disc almost every day,” he added.

The ripple effects of the power crisis are also hitting other sectors hard, including hairdressing businesses like Lina Salon, owned by Elina Susu. These disruptions have not only reduced revenue but also frustrated clients, who often opt for salons with power backups.

On a typically busy weekend, Lina Salon was eerily quiet when I visited. Elina, alone in her salon, was preparing for a single client who had called ahead. When asked why she couldn’t delegate the task to a staff member, she explained that rising service costs and higher wage demands due to economic challenges made it difficult to retain staff.

“Our business has slowed significantly, mainly because of these power outages,” she shared.

Elina revealed that running the salon during blackouts is prohibitively expensive.

“We need a 5000 KVA generator to power at least two hair dryers and heat water for washing hair. Hiring such a generator costs no less than K700 per day,” she explained, highlighting how the power crisis has made it increasingly difficult to sustain her business.

Economist Emmanuel Zulu noted that prolonged power outages are putting significant pressure on small and medium enterprises (SMEs) that rely solely on income generated from their businesses.

Mr. Zulu explained that many businesses are struggling, with some even having to downsize their workforce due to reduced revenue. He also pointed out that the placement of generators by the government in key public areas has provided some relief to businesses, but the sustainability of this solution is uncertain due to high fuel costs and maintenance expenses.

“The high exchange rate is not favourable, and the significant depreciation of the kwacha is also affecting SMEs that import products into Zambia. The outlook remains gloomy,” he said.

Memory and Grace plait a client’s hair, as the best option for the week following unprecedented power outages. Picture by Andrew –Knox Kaniki
Widespread disruptions

In nearby Mtendere Compound, business hours have shortened drastically. A local entrepreneur described how his once-bustling shop, which used to operate until 21:00, now closes at 17:00 due to power outages.

John (not his real name), a small-scale businessman, explained the toll load shedding has taken on his operations.

“I used to have a lot of customers between 18 and 21 hours before load shedding but now am forced to close when it gets dark,” he shared.

As I wrapped up my investigation into the impacts of load shedding on small-scale businesses in Lusaka, a call from my mother in Serenje District broke my focus. She reminded me to collect the last two 50kg bags of maize stored at her home.

The brief conversation, lasting barely five minutes, stirred memories of my investment in maize farming—an endeavour that had yielded only a quarter of my expectations.

The 2023/24 drought, declared a national disaster by President Hakainde Hichilema, had not spared Zambia’s agriculture sector. This severe crisis, exacerbated by the El Niño phenomenon, left vast fields parched and significantly reduced crop yields, with maize—the country’s staple food—taking the hardest hit.

A Glimpse of hope

Driving back home, dreading the infamous Lusaka traffic and lost in thought, I suddenly noticed the traffic lights at the junction of Tokyo and Mosi-O-Tunya Roads flicker to life. “Phew! I sighed in relief. Power was back!”

ZESCO, the state power utility responsible for more than 90 percent of power generation in Zambia, has pledged to improve the reliability of the power supply and enhance access to essential services for communities.

In a recent statement issued on 4th December, company communications strategy manager Muntanga Sibalwa emphasised that newly installed generators at critical locations such as markets and health facilities have been optimized to run for 8 hours during peak business hours.

Ms. Sibalwa explained that the diesel generators serve as a backup power source in designated areas, playing a crucial role in ensuring the resilience and stability of the power supply infrastructure.

“The gensets will be used during times of strain on the electrical system, particularly during peak demand periods and system maintenance,” she said.

Other initiatives being undertaken by ZESCO to alleviate the load shedding challenge include importing power from neighboring countries like South Africa and Zimbabwe, as well as the construction of a 100-megawatt solar project in Chisamba District.

While some business owners have turned to costly generators or solar panels, many lack the resources to make such investments. Without sustainable solutions, stories like those of Elina, a salon owner, and James, a welder, may become more common, putting the survival of small businesses—vital to the economy—at risk.


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