East African Business Week

DAR ES SALAAM, TANZANIA - As though the current power shortages  now gravely afflicting Tanzania's economy are not enough, the Tanzania Electricity Supply Company Limited (Tanesco), announced more cuts starting this week.
Tanesco said it is forced to extend power rationing to as much as 12 hours every day because of low water level at the main power dam at Mtera along the Ruaha river.
The country has been suffering from power rationing since last year during which time the Confederation of Tanzania Industries (CTI) said at least 50 out 250 industries were forced to shut down and laid off their workforce. Many others were forced to reduce industrial production for lack of power.
Devastating as it were, power rationing was up to six hours, but with the added painful power cuts, the net effects on the country's economy and sustenance of Tanzania's gross domestic production and inflation will be difficult to discern.
The country's power demand is 840MW, but can produce just over 400MW, and even that is being cut further down. The industrial sector may be the first to suffer gravely from power the shortage, but it also affects small entrepreneurs, businesses, artisans particularly of metal works, and disrupts social life.
The country's inflation has maintained an up spiral due to rising food prices, increases in fuel prices, and the recent rise in electricity tariffs - all of which go worsen the people's lives and wellbeing making life unbearable to most Tanzanians.
The new power rationing will affect all towns connected to the national grid and Zanzibar.
The acute shortage has on the other boosted sales of generators by commercial entities, but the cacophony from these portable power units is devastating in urban areas as they make loud noise.
Walking down Dar es Salaam business district, people fail even to use their mobile telephones due to the loud noise from the generators.
Under such acute power situation, prices of many services also rise such as printing services and internet communications.
All Tanzania Government can do is promise that it was encouraging private firms to install portable power and generate for Tanesco -  the national generation and distribution company.