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Small businesses feeling the heat of ongoing power woes
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What you need to know:
- Small businesses have been greatly impacted by power outages and rationing, resulting in devastating consequences
Dar es Salaam. As the government scrambles to restore reliable electricity, the fate of countless entrepreneurs hangs precariously.
The Citizen’s survey reveals the devastating impact of power outages and rationing on small businesses, their lifeline flickering with each blackout.
From bakers to welders, the struggle is palpable, echoing the sentiments of countless entrepreneurs whose daily operations hinge on reliable access to electricity.
A fish trader from Tabata Segerea in Dar es Salaam, Mr Juma Mbwana, painted a grim picture of his predicament while speaking with this newspaper on Wednesday, February 14, 2024.
“Since the power rationing started last year, I’ve suffered losses of upwards of six million as my fish spoil without refrigeration,” he lamented.
Despite investing in a generator, the costs of fuel eat into his profits, leaving him at a loss.
“I’m being forced to consider giving up on my business,” he added, pleading for government intervention.
A small trader of chicken meat in Sinza Mori in Dar es Salaam shares a similar sentiment, noting,
“The electricity challenge has been unbearable.”
With power outages disrupting his operations, Mr Salim is left with spoiled inventory and dwindling profits.
“I can’t afford to buy a generator anymore,” he adds, stressing the financial strain imposed by the ongoing crisis.
Another businessperson who runs a bakery and saloon in Kibaha town-Coat region, Ms Monika Abedi, shared Mbwana’s anguish. “I used to earn Sh300,000 per day, but now even Sh100,000 is a struggle,” she reveals.
With overheads mounting and profits dwindling, Ms Abedi has been forced to shutter some of her businesses until the situation stabilises.
The plight extends beyond Dar es Salaam and the Coast regions, as Amos Maganiko, a welding businessman from Mwanza, attested.
“I decided to return to my village and prepare a paddy due to the difficult living conditions in Mwanza,” he explained, highlighting the toll the electricity crisis has taken on his livelihood.
Despite promises of resolution, Mr Maganiko remained sceptical, opting to wait for reliable electricity before reopening his business in the Lake Zone’s city.
Despite these hardships, the government has vowed to address the power woes plaguing the nation. President Samia Suluhu Hassan’s directive to dissolve the entire board of Tanesco last year signalled a commitment to tackling the issue head-on.
Furthermore, initiatives such as the Julius Nyerere Hydropower Project (JNHPP) are targeted to alleviate the strain on the power grid.
Speaking to Parliament early this month, Deputy Prime Minister and Minister of Energy, Dotto Biteko, acknowledged the severity of the situation.
“The availability of electricity remains a challenge,” he conceded. However, he reassured lawmakers that efforts were underway to bridge the supply-demand gap, with the completion of the JNHPP project slated for February.
In her address recently, President Hassan reaffirmed the government’s commitment to resolving the crisis. “By March, we will add two plants providing 470 megawatts, covering the current shortfall,” she declared.
Additionally, plans to activate the Rusumo plant will further bolster the nation’s power supply, she said.
Parliament’s resolve to expedite the completion of the JNHPP project shows the urgency of the situation. The chairperson of the Parliamentary Standing Committee on Energy and Minerals, Dr Mathayo David, emphasised the need for swift action.
“The state of the electricity supply is unsatisfactory,” he remarked, urging the government to prioritise infrastructure upgrades and maintenance.
As Tanzania Electricity Supply Company (Tanesco) works to enhance the national grid’s capacity, the second phase of connecting the Chalinze cooling station offers a glimmer of hope.
Once completed, authorities say, the station will bolster the transmission of electricity from JNHPP plants, easing the strain on the grid and restoring confidence in small businesses reliant on electricity.