Malawi's small businesses are struggling to remain afloat due to persistent electricity outages. A study on energy access and firm performance among 362 small and medium enterprises in Lilongwe, Blantyre, Mzuzu and Mangochi found that 90 percent of the enterprises had experienced power interruptions. The study revealed that grid electricity accounted for 80 percent of energy access among the enterprises, but supply was widely unstable.
The impact of power interruptions on small businesses ranges from severe to low. Charles Siyalo, owner of Vilela Welding Shop in Ndirande Township, Blantyre, said the outages were making it difficult for his business to meet production capacity and deadlines. The business, which has operated since 1990, experiences power outages two times a day, in the morning and late afternoon, each averaging three hours.
Similar pressure is being felt by meat products trader Bridget Banda of Chirimba Township in Blantyre. She has been forced to sell stock without profit to avoid losses, while some products were thrown away after going bad. Banda said her business cannot afford a generator, and with little sales, it is becoming difficult to maintain the business.
The Malawi Union of SMEs president James Chiutsi said small and medium enterprises, which contribute about 40 percent of gross domestic product, are losing sales, throwing away spoiled goods and halting production as outages average six hours a day. Some businesses are spending up to 30 percent of operating costs on diesel, with monthly expenditure rising significantly.
Chiutsi added that entrepreneurs are surviving by sharing generators, shifting working hours to Electricity Supply Corporation of Malawi windows, using small solar for lights, and cutting stock. Without a reliable power timetable and affordable alternative energy support, livelihoods and businesses are at risk. The Small Scale Business Operators Association of Malawi general secretary Tennyson Mulimbula urged the government and traders to diversify into alternative energy sources.
The Electricity Generation Company data show that available generation capacity stands at 370 megawatts against installed capacity of 454.67MW, while peak demand stands at 451.61MW. The Electricity Supply Corporation of Malawi has been implementing load-shedding mitigation measures, including demand-side management, load shifting and encouraging conservation during peak periods.
The Minister of Energy Jean Mathanga aims to stabilise the grid and ensure Malawians experience more reliable power supply before December. The government is also stocking up on spares to address machine breakdowns. Malawi remains far below its 70 percent access target for 2030, with only 25.9 percent of the population having access to electricity.
Key points
- Small businesses in Malawi are struggling due to persistent electricity outages.
- The outages are disrupting production, shortening working hours, spoiling stock and pushing up costs.
- The government aims to stabilise the grid and improve power supply before December.
