This archive report was first published on 5 August 2019.
On July 20, Zimbabwe's biggest mobile phone network, Econet, faced a major challenge as its services were down due to a power outage.
According to Econet, the power outage resulted in an automatic system shutdown to protect critical network operations centre equipment, as the company's generators failed to kick-in.
The power outage was just one of the many challenges faced by businesses in Zimbabwe, which has been experiencing its worst power shortage in history. The power utility, Zesa, has been rationing electricity supply for up to 18 hours daily, leaving businesses to rely on diesel for their operations.
The price of diesel has skyrocketed from $1.38 in January to about $7.50 at the end of July, making it a rare and expensive commodity. Econet, owned by billionaire Strive Masiyiwa, has warned that it may have to resort to 'drastic measures' after incurring the cost of buying and ferrying two million litres per month of diesel to power its base stations.
With the country producing only about 1,100MW against peak demand of 2,200MW, Zimbabwe's power crisis has taken a toll on businesses, with some forced to close or scale down operations due to prolonged power outages.
Finance minister Mthuli Ncube recently increased electricity tariffs for domestic consumers threefold to three US cents in a mid-term budget review, while non-exporting businesses would pay 5 US cents per kilowatt/hour.
According to the Confederation of Zimbabwe Industries (CZI), several companies have closed due to the power cuts, while the Zimbabwe National Chamber of Commerce (ZNCC) said the power shortages cost industry up to $200 million a week.
