International Journal of Multidisciplinary Research and Development

International Journal of Multidisciplinary Research and Development


International Journal of Multidisciplinary Research and Development
International Journal of Multidisciplinary Research and Development
Vol. 4, Issue 9 (2017)

Information and communication University, electricity load shedding: It’s impact on SMIS in Ndola’s industrial area in, Copperbelt province of Zambia


Lungu Dryson, Dr. Serah Mbetwa

This report aimed at assessing the economic impact of electricity rationing on the selected SMIs operations in the industrial area of Ndola. The study investigated the potential economic impact of differently distributed rationing options aimed at reducing peak electricity usage and consumption.
One of the objectives was to assess short- and medium effects on businesses operating from the Ndolas industrial area. The research was carried out in Ndolas industrial area using stratified sampling. The methodology consisted of business houses survey in which questionnaires were distributed to respondents. The methodology of the direct assessment approach used direct loss by which it estimated the cost of power outages through lost production, materials and time. The direct assessment method is an economic appraisal tool that estimates the cost of power outages by allowing electricity consumers to express their losses in monetary terms.
This report is organised in three main sections. The first section analyzed the potential economic impact of electricity rationing on businesses. Secondly, uncertainty that surrounded the timing of power cuts and the damage done by the unplanned electricity cuts. The negative impact on industry and business was greater in the short term than in the medium or long term. However, there might be long-term consequences of industries being forced to adjust to an immediate electricity cut. Examples included the closure of insignificant mines, loss of investor confidence in direct investments, extra costs of materials, labour such as the payment of idle labourers and cost of overtime to meet production and orders, damage to equipment cost, restart cost, time or opportunity cost per load shedding are part of the load shedding cost by the direct assessment.
The paper presents the analysis of the direct costs incurred by businesses that went beyond production loss or output loss. In addition to output loss cost, other direct costs were the negative impact on direct investment, output and employment. The exact impacts was a shift in resources from tradable manufacturing such as smelters or motors to inward-oriented activities such as construction or personal services appeared to offer employment a boost and reduced the current account deficit as imports for production exports fell.
Respondents suggested their solutions to the current electricity shortages like the construction of extra hydro power stations and the investment into alternative sources of energy like solar and wind.
Pages : 161-170