The Zambia Association of Manufacturers (ZAM) has revealed that the current load shedding has increased production costs for most manufacturers in form of an increase in fuel expenditure to run generators, as some companies’ project to spend millions of Kwacha on diesel every month.
ZAM Chief Executive Officer Muntanga Lindunda said despite the split in the power outage period, the effect on the manufacturing sector is still immense and might inevitably have an effect on the exchange rate and inflationary targets in the country.
Ms. Lindunda further encouraged government to implement policies to encourage energy production by the Private sector.
The Association said it has also advocated for the removal of excise duty from captive power plants by ensuring that a higher portion of energy to the Grid as an incentive is supplied by the private sector.
“The negative impact of this on the already overburdened Foreign exchange requirements cannot be understated as the country’s fuel consumption will rise,” she said.