ZCAS UNIVERSITY
THESIS DEFENCE
The Influence of Electricity Loadshedding on Zambian Enterprises:
A Case Study of Selected Lusaka Based Businesses.
By:
PRECIOUS MAPIPO
Supervised by: Dr. Burton Mweemba
PRESENTATION OUTLINE
1.Introduction and background
2.Problem statement
3.Research objectives
4.Research questions
5.Literature review
6.Conceptual framework
7.Methodology
8.Data analysis
9.Main findings
10.Conclusion and implications
INTRODUCTION AND BACKGROUND
 Electricity is crucial for economic performance and business
operations, affecting industrial machinery, human productivity,
and product marketing. Reliable electricity enhances customer
satisfaction and maintains business reputation.
 Zambia's energy supply is primarily hydroelectric (GIZ, 2023).
Most businesses, both large and small, rely on this source for
production.
 In the past decade, Zambia has faced significant barriers to
economic development due to unreliable and low-quality
electricity (GIZ, 2023). Power outages lead to idle inputs,
hinder business operations, and cause substantial economic
PROBLEM STATEMENT
 Zambia’s heavy reliance on hydroelectric power introduces significant
challenges, especially during droughts and periods of low water levels. The El
Nino drought in Zambia has significantly impacted various sectors, including the energy sector. The Ministry of
Energy reported a power deficit of 750 MW as of May 2024.
 These conditions lead to frequent power shortages, which severely impact
business operations, productivity, and overall economic growth (Abeberese et
al., 2021; Hardy & McCasland, 2021).
 Despite extensive research on electricity supply impacts in various African
countries and developing regions, there is a notable scarcity of studies
focusing on Zambia's unique regulatory and infrastructural challenges.
 This study aims to address these gaps by investigating the specific effects
of electricity shortages on business performance in Lusaka, Zambia.
RESEARCH OBJECTIVES AND QUESTIONS
GENERAL OBJECTIVE
SPECIFIC OBJECTIVES
RESEARCH QUESTIONS
The study conducted in the
Lusaka district aimed to
examine the influence of
electricity demand and load
shedding on businesses in
Zambia.
To investigate the impact
of load shedding on the
performance of businesses
in Lusaka, Zambia.
What is the impact of
load shedding on the
performance of Lusaka,
Zambia businesses?
To evaluate the measures
implemented by businesses
to mitigate the load
shedding in Lusaka, Zambia.
To evaluate the measures
implemented by
businesses to mitigate
the load shedding in
Lusaka, Zambia.
To analyse how these
measures have affected the
performance of businesses
Lusaka, Zambia.
How have these measures
affected the performance
of businesses in Lusaka,
Zambia?
To identify potential
options for mitigating the
What are the potential
options for mitigating
LITERATURE REVIEW
 A
study
by
Makhdoom,
shedding
had
a
et
significant
al.,
(2017)
impact
on
revealed
that
load
business
operations,
leading to difficulties in customer interactions, decreased
sales, product damage, and increased costs in Pakistan.
 Bassey
and
Imoh
(2021)
highlighted
a
significant
positive
impact of power provision on the operational efficiency of
SMEs in Nigeria. Moreover, the study revealed that inadequate
electricity supply has a substantial negative effect on the
operational efficiency of SMEs, leading to challenges such as
failure to meet daily targets and increased operating costs.
 Banda,
et
al.,
(2020)
indicated
that
load
shedding
had
CONCEPTUAL FRAMEWORK
METHODOLOGY -ADD RESEARCH ONION
 A descriptive research design was used
 Positivism research philosophy was adopted by the study.
 According to International Growth Centre (2024), there are at
least
47,428
businesses
operating
in
Lusaka,
thus,
the
population.
 A sample of 100 businesses determined using Slovin’s formula
at (10%) was considered by the study.
 Stratified
sampling
was
using
in
selecting
the
businesses
under study.
 A questionnaire was used as a research instrument.
 Research instrument was checked for validity and reliability
DATA ANALYSIS
Table 7.0 Distribution of respondents
according to the kind of energy they use
during load shedding.
Table 13.0 Distribution of respondents according
to how much percentage in reduction in profit.
SAMPLE
TYPE OF
SIZE
RESPONSE
FREQUENCY
PERCENTAGE
SAMPL
(%)
E
TYPE OF RESPONSE FREQUENCY
PERCENTAGE
SIZE
100
(96
said
reduction
in Profits)
Who
5%
1
1
10%
4
4
20%
7
7.2
25%
6
6.2
30%
17
18
35%
4
4
40%
11
11.4
50%
7
7.2
60%
4
4
Not
36
37
indicating
100
Solar
3
3%
Standby gen
15
15%
Other
4
4%
None
78
79%
100
100%
set
Total
DATA ANALYSIS CONTINUED
Table 8.0 Distribution of respondents according
to the effects of the use of substitute energy
on business.
SAMPLE
SIZE
100 (21 used
substitute
energy)
TYPE
OFFREQUENCY
Table 15.0 Distribution of respondents
according to whether load shedding hindered
diversification
PERCENTAGE
SAMP
RESPONSE
13
SIZE
57%
100
operation
cost
Constant
6
24%
Drop
in3
14%
supply
and
supply
&
production/
service
provision
production/
provision
PERCENTAGE
LE
Increased
service
TYPE OF RESPONSE FREQUENCY
Total
Disagree
15
15%
Agree
85
85%
100
100%
FINDINGS
Research Objectives
Findings
To investigate the impact of load
shedding on the performance of
businesses in Lusaka, Zambia.
Load shedding significantly reduces
productivity and profitability for
businesses. This is primarily due to
reduced operating hours during outages,
leading to decreased sales and
revenues.
To evaluate the measures implemented by
businesses to mitigate the load
shedding in Lusaka, Zambia.
Most businesses do not utilize
alternative energy sources during load
shedding. Those that do primarily use
standby generators.
To analyse how these measures have
affected the performance of businesses
Lusaka, Zambia.
Measures to mitigate load shedding have
mixed effects. While they can increase
operational costs and reduce
production, successful implementation
allows some firms to maintain
continuous supply and production,
enhancing overall performance.
CONCLUSIONS
 Economic growth in sectors like mining, manufacturing, and agriculture has increased
electricity demand, resulting in a 500MW deficit.
 During load shedding, few firms use alternative energy sources like generators and solar power.
 The lack of affordable and reliable energy sources due to load shedding hinders business
growth, causing closures, inefficiencies, reduced quality, limited hours, increased costs, and
communication issues.
IMPLICATIONS
Implement energy-saving appliances, demand-side management, and conservation strategies to
reduce electricity demand.
Foster collaboration between government, private sector, public stakeholders, and international
partners to address the energy deficit comprehensively.
REFERENCES
•
Abdisa, L. T. (2018). Power outages, economic cost, and firm performance: Evidence from Ethiopia. Utilities Policy, 53, 111-120.
•
Abeberese, A. B. (2012). Electricity Cost and Firm Performance: Evidence from India, Department of Economics, Columbia
University, New York.
•
Bose, T. K., Uddin, M. R., & Mondal, A. (2013). Impacts of electricity access to rural SMEs. International Journal of Managing
Value and Supply Chains, 4(4), 17-27.
•
Botha, T. (2019). The impact of'load-shedding'within the Nelson Mandela Bay restaurant industry (Doctoral dissertation, The IIE).
•
Bowen, G. A. (2009). Document analysis as a qualitative research method. Qualitative research journal, 9(2), 27-40.
•
Dugan, R. C. (2000). Electrical power system quality. The McGraw Hill Companies.
•
Dunne, C. (2011). The place of the literature review in grounded theory research. International journal of social research
methodology, 14(2), 111-124.
•
Fay, M., Han, S., Lee, H. I., Mastruzzi, M., & Cho, M. (2019). Hitting the Trillion Mark: A Look at How Much Countries Are
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