A new World Bank report has found that Zimbabwe’s unreliable electricity supply is eroding an estimated 6.1% of the country’s annual economic output, compounding pressures on businesses and households already struggling with high operating costs.
The assessment points to frequent and lengthy power cuts as a key factor forcing companies to divert scarce capital toward backup generators and alternative energy sources instead of productive investment. According to the Bank, the outages inflate the cost of doing business, weaken firm-level productivity, and push enterprises toward expensive emergency power solutions they should not need.
Mines, manufacturers and small traders have repeatedly said load shedding disrupts shifts, damages equipment and delays deliveries, while homes go without electricity for long stretches. Economists say the energy gap is now one of the biggest structural obstacles to Zimbabwe’s recovery, effectively wiping out more than six dollars in every hundred of national income.
The World Bank has called for accelerated reforms and investment in generation capacity and grid infrastructure to cut the losses and restore a reliable power supply as a foundation for growth.
