This archive report was first published on 9 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 generators failed to kick-in following a Zimbabwe Electricity Supply Authority (Zesa) power outage, resulting in an automatic system shutdown to protect critical network operations centre equipment.
As of July 2019, Zimbabwe was experiencing its worst power shortage in history, with Zesa rationing electricity supply for up to 18 hours daily.
The power outages have taken a toll on businesses, which have to rely on diesel for their operations. The price of diesel has jumped from $1.38 in January to about $7.50 at the end of July.
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.
Finance minister Mthuli Ncube announced a mid-term budget review on Thursday, increasing electricity tariffs for domestic consumers threefold to three US cents.
The Confederation of Zimbabwe Industries (CZI) stated that several companies have closed due to the power cuts, while the Zimbabwe National Chamber of Commerce (ZNCC) estimated that the power shortages cost industry up to $200 million a week.
