Ethiopian Power Crisis Prompts Surge in Generator Sales

(African Press Agency) — The current power crisis in Ethiopia prompts surge of the sale of generators, mainly in Addis Ababa where many businesses and international organizations are operating. Owing to poor performance of seasonal rains, there is a short supply of electric power in Addis Ababa where each district receives power five days a week.

According to the Ethiopian Electric and Power Corporation (EEPC), the blackout which started in March 2008 will continue until the rainy season in June 2008.

However, big businesses are purchasing DC generators in an apparent attempt to prevent any impact on their profit making due to power cuts.

Hotels, hospitals, internet cafés, private businesses both small and big ones are the ones being affected by the power cuts in the city, home to around five million people and housing the African Union (AU) headquarters.

“Small generators with 2.0 horsepower have been sold much more than ever before. People who run the business are obliged to increase their supply considering the demand,” Tesema Zelalem, a salesman at a generator shop told APA.

He said that many people are still asking for generators since the government announced a week ago that the power cuts will continue until June 2008.

Private companies such as publishers, printers, and service giving institutions have expressed more interest to generator sellers, Zelalem continued.

“We found it necessary to buy this small generator to run my business. Losing power twice a week for 14 hours a day is too much, especially for the business community,” Meaza Mengistu who owns a cafe and was buying a generator.

The small generators are on sale for US$ 400 and US$ 500 depending on the brand and the guarantee.

“We are forced to buy generators even if the cost of diesel is increasingly on the rise,” Mengistu added.

The EEPC announced the need of power rationing to cope with the 80 megawatts shortfall.

According to economists, the current power crisis can cost the business community around US$ 100 million during the period (March to June 2008).

In 2007, EEPC signed an agreement with Djibouti, Sudan and Kenya to supply them electricity in the coming year, and a multi million-dollar hydroelectric power dam is being constructed in the country.