Erratic electricity power supply and business performance in Zimbabwe (2014 - 2019): Case of RIOZIM Limited

Abstract

The motive for this study was to establish the impact of erratic power supply on business performance, focusing on RioZim Limited mining company in Zimbabwe. The study used Pooled Ordinary Least Squares Regression Analysis as a methodology, from a panel data of four (4) companies in the RioZim Group of companies between a period of 2014 to 2019. The companies were selected from a list of Chamber of Mines Zimbabwe mining companies in the big category to allow for generalisation. Secondary data were obtained from the public reports and internally generated reports. The results showed that power outage hours negatively impacted on business performance, while grid power consumption and alternative energy supply had a positive impact on business performance. The study recommends that government should increase power supply to the productive sector so as to reduce power outage hours and increase grid power consumption for improvement in business performance. The study also recommended that government should scrap duty on alternative energy sources, such as generators, to encourage investment in alternative energy for improvement of business performance. Lastly, related to alternative energy, mining firms should invest in alternative energy, as a power outage mitigation strategy, to improve business performance.