Effects of Prolonged Power Outages on Production Efficiency and Profitability of Manufacturing Small and Medium-Sized Enterprises (SMEs) in Lusaka District

This study examined the effects of prolonged power outages on the production efficiency and profitability of manufacturing SMEs in Lusaka District. It specifically assessed the extent of production disruptions, the impact on operational costs, coping strategies employed, and recommendations to enhance energy reliability and resilience. Using a descriptive and correlational design, data were collected from 100 SMEs and analyzed with SPSS and Excel. Results showed that power outages were frequent, with 28% of SMEs experiencing very frequent interruptions and 36% frequent outages. Correlation analysis revealed strong positive relationships between outage frequency and production disruptions, including idle machinery (r = 0.703, p < 0.01) and delayed orders (r = 0.655, p < 0.01). Outages significantly increased operational costs, with additional expenses ranging from K5,001 to over K50,000. SMEs relied on coping strategies such as generators or alternative power sources (42%), rescheduling production (25%), and outsourcing (12%). Recommended measures included investment in renewable energy, installation of backup generators, energy-efficient production methods, strategic stockpiling, and operational rescheduling.