Power, not policy, is the binding constraint on manufacturing
Industry surveys have said the same thing for a decade. The measured electricity access rate does not capture it, because it counts connections rather than supply.
By ZIX Editorial
Industry desk · 10 min read
Arlington, VA · American Public Power Association · Unsplash Licence
The published electricity access rate for Zimbabwe has improved substantially over the past decade. Manufacturing capacity utilisation has not. These two facts are not in tension, because the access rate measures whether a premises has a connection, not whether power flows through it.
For a manufacturer, an unreliable connection is worse than no connection, because it requires the capital cost of grid connection plus the capital cost of backup generation plus the operating cost of running the latter at diesel prices.
This is the clearest example on the platform of why a single indicator, read without its definition, misleads. It is also why ZIX publishes the definition alongside the number.
Editorial note: Scaffolding copy written to establish structure, voice and length. Replace before publication.
