The Economics Association of Malawi (Ecama) president, Henry Kachaje, has advised the Malawi government to privatize the Electricity Supply Corporation of Malawi (ESCOM) as the current continuous blackouts are greatly affecting the growth of the country’s economy.
Malawi has had the worst blackouts this year and some business people have lamented that their businesses are going down as perishable goods are becoming a problem to keep.
But Kachaje believes the solution is to privatize Escom.
He said: “There is a need for government to privatize ESCOM if the country is to address the problems of power outage and the economy of this country has been greatly affected by the continuous blackouts hence the need for privatization.”
A few months ago, President Peter Mutharika advised Malawians to get used to the problem of blackouts until 2018 because that is the time when the situation will be addressed with help from the Chinese Government.
Recently the electricity body said that the current electricity situation is expected to go from bad to worse in January once the Electricity Supply Corporation of Malawi Limited (ESCOM) decides to implement its plans that will see the closure of Nkula power generating plants, media reports have said.
According to the reports, a leaked document in which ESCOM met with Corporate organisations has revealed that ESCOM briefed them that it has plans to completely shut down one of its plants, a situation that will see electricity production reduce drastically.
“The climax of electricity shut down will be in January when they will scale down for two weeks,” the reports say quoting the document.
It is said that ESCOM has warned its valued customers in the Corporate world who contribute 44% of its revenue that in January 2016 they should brace for tough times.
It has been established that among the things that ESCOM suggests will happen with the closure of its power plants is that there will be only 6 hours of electricity in a day to its customers.
ESCOM however hinted that it is contacting Mozambique and Zambia to support it with electricity regardless of the fact that Zambia itself is failing to supply electricity to its citizens.
Currently, Malawi is battling with the worst ever power cuts. People have accused the DPP led government of failing to manage and contain the electricity situation which has continued deteriorating. President Mutharika has advised that the situation will be contained after three years.