President of Economists Association of Malawi (Ecama) Henry Kachaje has told the Malawi government to privatise power utility firm, Escom saying the frequent power cuts are contributing to economic slowdown.
Kachaje said the only way to make Escom more efficient and effective is to put it in the hands of the private sector.
“If it is in the hands of the private sector, it will be run as a company and it will be more efficient and effective,” said Kachaje.
He said the power blackouts are not conducive for both local and foreign investors.
Kachaje’s comments come on the backdrop of severe power cuts that is leaving most parts of the country with two to three hours of electricity power.
Some major industries in Lilongwe have not ruled out job cuts as most times the machines are idle and industries are making huge losses.
An official from the ministry of Energy Kester Kaphaizi says the government will not privatise Escom but increase its power generating capacity.
President Peter Mutharika said Malawi will be out of perpetual darkness after the Chinese funded coal powered electricity plant is commissioned in three years time.
The coal powered electricity plant is expected to add 300 megawatts of electricity on the grid.