Frequent power cuts plague even industrial parks in Afghanistan.
The Afghanistan Industrialists Union says some companies have shut down businesses because of low production levels. Abdul Jabar Safi, deputy in the union, says that if the government doesn’t solve the problem of electricity shortage for industrial parks many companies could collapse. Five out of 12 months last year was a write-off, he says. “Businesses worked only seven months in 2016 because of electricity failure or security issues,” he says.
He calculates that just a one-hour power cut can play havoc with production. Afghan companies cannot hope to compete with cheaply priced imports, he says.
Maiwand Aryan who heads a shoe factory called Shigal says the government should lower the price per unit of electricity. He says that if the electricity goes and comes like at present they cannot hope to meet production targets. “We often don’t have electricity now, it goes off two, three times every day or it doesn’t come the whole day. How can we meet the needs of our countrymen in such a situation?” he asks.
Aryan believes if the government wants Afghanistan to become self-sufficient, and wean it away from imports made in neighbouring countries, it should make reliable power distribution a priority.
Still another company Hendokoosh that makes plastic dishes complains how power outages have taken over from lack of markets as the company’s biggest concern. Mubarak Ali who works with Hendokoosh says, “We have tried to shut down this work and start another work, but the electricity does not come on for hours in a day. If this problem is not solved we would have to close the company.”
The power situation is erratic not just in Kabul province but in other provinces like Kunduz, Nangarhar, Kandahar and Herat. The Chamber of Commerce and Industries in Kunduz says that the shortage of facilities, the constant power outages and high electricity tariff have forced many businesses to shut down or move out of the province.
Masoud Wahdat, the head of exports in the Kunduz chamber, says exports from Sherkhan port have decreased by 50 percent. “Earlier 400 traders were active in Sherkhan port but now most have left Kunduz due to shortage of electricity and other facilities in Kunduz city.”
Erratic power has created many problems in the eastern province of Nangarhar. Some 160 big and small industrial companies have been affected. Toor Malang, head of the provincial industrialists union says that half of the 25 MW of electricity that is the province’s share goes to the provincial capital Jalalabad. “The production of plastic items, trashing machines, metal bars and other items manufactured by companies here have stopped because of chronic power outages,” he says. Factory owners point out that they cannot keep running factories on generators – their losses would be more than the profit they make.
Samiaullah Shegiwal, an employee in metal bar-manufacturing unit, says he has been working for 10 years and he can earn only the money to run the expenses of his house. Shegiwal is worried he could lose his job. “There is barely 5-10 hours of electricity daily. When there is electricity we have work, otherwise there is no work for us,” he says.
Rising cost
Businesses are critical of the power utility Breshna’s decision to hike tariffs for all categories of consumers by 25 percent. Manufacturers wonder if Breshna wants to stop industry in Afghanistan, and have demanded a roll back. Sakhi Paiman, head of Afghanistan’s Industrialists Union, calls for a review of the decision. “Breshna should respond because many factories face problems and would not be able to compete with foreign companies. The country can never be self-sufficient,” he says. He warns there could be a complete shutting down of all manufacturing in the country if the situation that has risen continues unchecked.
Khanjan Alokozai, deputy chairman of the Afghanistan Chamber of Commerce and Industries calls the power tariff hike “unjust”. “The increase by Breshna is an unjust decision; people and investors cannot afford to pay it. We urge Breshna to review anew its decision.”
Capital flight
The Ministry of Economy estimates investors have taken out large volumes of money. At a consultation with Breshna heads from the 34 provinces, Abdul Satar Murad, minister of economy said if the power situation continues there is fear of more capital drain. “An estimated 80 billion Afs (1.2 billion USD) of our private sector capital has been invested in other countries in the region and elsewhere. Unless the money returns, our industry will collapse,” he warns.
Fazel Hadi Muslemyar, chairman of the Senate, says the government should provide all facilities for the growth of industry. “We ask the government to solve the problems of electricity shortage. We should not damage the breathing of our industry.”
Meanwhile, Wahidullah Tawhidi, spokesperson for Breshna, blames the power outages on irresponsible consumption by consumers. People use more than needed electricity, he says. “We ask all our countrymen to help us in (reducing) consumption of electricity. Industry should help Breshna by consuming less electricity.”