Power cuts increase Simbisa’s operating costs
LISTED quick service restaurants group Simbisa Brands, says its stores rollout programme has been adversely affected by the incessant power constraints that have increased the company’s operational costs.
The group is rolling out an expansion programme targeting 45 stores countrywide by the end of the financial year ending June 2023, and so far, it has opened 25 new outlets to the tune of US$4,5 million.
In an interview, Simbisa Brands chief executive, Warren Meares, said his organisation, which migrated to the United States dollar-denominated Victoria Falls Exchange last month, had production costs exacerbated by new outlets that solely depend on diesel-powered generators.
Simbisa Brands chief executive, Warren Meares
“Our operational costs are being worsened by the current power challenges in the country because we are dependent on diesel-powered generators to run all our new outlets as they are not connected for electricity,” he said.
“We are not connected for electricity because of the unavailability of power connection cables in Zimbabwe and we have to import these from South Africa.”
Meares said their outlets roll-out initiative is being delayed by the existing power situation.
Simbisa Brands, which employs over 6 000 people in the country, owns stores that include Chicken Inn, Creamy Inn, Bakers Inn, Nando’s, Fish Inn and Baker’s Inn has a footprint across Africa in Ghana, Kenya, Namibia, Zambia and Mauritius.
Zimbabwe has for close to two decades experienced electricity supply challenges due to lack of investment in new power projects by Zesa.
The country’s oldest and biggest thermal power plant, Hwange, was built in two stages between 1983 and 1986. Zimbabwe’s existing power crisis has also been exacerbated by low water levels at Kariba Dam which provides water for electricity generation to Kariba Hydropower Station.
As a result of low dam levels, the Zambezi River Authority which administers Kariba Dam, in the last quarter of 2022 directed the Zimbabwe Power Company (ZPC) to shut down the hydropower station.
On account of limited generation capacity, the country is presently relying on imports from Zambia and Mozambique.
Last month, the Government announced that the country would soon import 500MW from Mozambique and Zambia while Hwange Thermal Power Station’s unit 7 is expected to feed into the national grid any time from now.
In light of subdued power challenges, some businesses have resorted to installing solar power plants with excess electricity fed into the national grid.
Kariba Power Station
“We have looked at solar but the challenge is most of our shops are in town where we don’t have roof space for the solar panels.
“We need a solar field where we can install the panels that can provide sufficient electricity to our operations,” said Meares, adding that they are looking at using Liquefied Petroleum Gas to power some of their equipment.-chronice.co.zw
