Small and medium enterprises (SMEs) power Zambia’s economy—they make up 97 percent of all firms, generate 70 percent of GDP and employ 88 percent of the workforce. Yet daily electricity rationing, now stretching up to 20 hours in some Lusaka suburbs (Diggers), is grinding many of these businesses to a halt. Prolonged drought, low reservoir levels and plant maintenance have combined to slash generation capacity, forcing ZESCO to ration power in ever‑longer blocks. Despite a May 8 2025 assurance that new solar and hydro projects “will mitigate load shedding once they kick in,” SMEs are still enduring marathon blackouts today (Diggers).
Zambia’s Escalating Power Crisis
| Year | Typical outage length | Key trigger |
| 2014–19 | 4–8 h | Below‑average rainfall |
| Mar 2024 | 8 h schedule announced (Lusaka Times) | Seasonal deficit |
| Aug 2024 | 17 h rotations (Diggers) | Kariba levels + Maamba maintenance |
| Sept 2024 | 3 h supply windows (Diggers) | Emergency load management |
| Apr 2025 | 7 h‑minimum supply directive to improve predictability (Facebook) | |
| May 2025 | ZESCO promises relief after 2025–26 projects go live (Diggers) |
The promised relief remains months away; businesses must operate within narrow, unreliable supply windows.
Daily Disruption on the Ground
- Manufacturers shut machines mid‑process, wasting raw materials.
- Bakeries and butcheries lose perishable stock when fridges stop.
- Hair salons, phone‑repair kiosks and Internet cafés close their doors, alienating customers and forfeiting income.
- Welders in Kalingalinga sit idle beside silent grinders and arc welders for most of the day.
Even when ZESCO publishes schedules, abrupt changes are common, leaving owners unable to plan production runs or client appointments.
The Financial Hit: Tenfold Energy Cost Increases
When the grid goes dark, 72 percent of SMEs fire up diesel generators. Running one costs US ¢ 45 per kWh—over ten times the grid tariff. Fuel, servicing and parts quickly erode slim profit margins. A Chingola Chamber of Commerce survey found local firms lost roughly 50 percent of expected 2024 output, dumping spoiled food and missing contract deadlines.
The Human Cost: Morale, Safety and Digital Isolation
Power cuts fragment shifts and lengthen working days. Staff earn less on piece‑rate jobs and struggle to reconcile unpredictable hours with family life. Dimly lit workshops raise accident risks, while dead routers sever e‑commerce links just as Zambia’s retail market moves online.
Ripple Effects Across the Economy
Widespread downtime means:
- Job cuts and under‑employment in urban centres
- Collapsing household demand that shrinks retail sales
- Lower tax receipts, squeezing public services
- Weaker export volumes and foreign‑exchange inflows
Because SMEs dominate every province, sustained load shedding threatens inclusive growth nationwide.
How SMEs Are Coping
- Diesel generators keep lights on but drain cash and emit pollutants.
- Rooftop and mini‑grid solar uptake is accelerating; government and CEEC grants now subsidise panels, inverters and batteries for qualifying SMEs (Facebook).
- Voltage regulators and surge protectors halve equipment‑damage risk.
- Co‑operative power pools let clustered shops share a larger generator or community solar array, spreading capital costs.
Government & Policy Responses
- Renewable build‑out: 100 MW solar farms in Chisamba and Kasama plus a 100 MW floating array at Kariba are slated for commissioning in 2025–26 (EY).
- SME solar kits: The Ministry of Small and Medium Enterprise Development is distributing subsidised PV packages and soft‑term loans.
- Load‑management directive: Energy authorities now instruct ZESCO to provide a minimum 7 h supply window to aid business planning (Facebook).
Further steps could include premium “exporter” tariffs, tax rebates on storage batteries, and joint ventures that fast‑track wind or geothermal capacity.
Recommendations for Business Resilience
- Map critical loads and size solar‑plus‑battery systems to cover them.
- Stagger workflows so energy‑intensive tasks coincide with grid uptime.
- Form local energy co‑ops to negotiate bulk‑buy discounts on PV, gensets and fuel.
- Lobby chambers and councils to enforce transparent, reliable shedding timetables.
Conclusion
Load shedding in Zambia has shifted from an inconvenience to an existential threat for the country’s entrepreneurial backbone. Unless grid stability improves, SMEs will keep diverting scarce capital from growth into stop‑gap power solutions. Yet targeted renewables, smart tariffs and co‑operative action can insulate businesses, preserve jobs and keep the lights—literally—on for Zambia’s economic future.
