The planned eight-day, 16-hour TANESCO power outages which went into effect yesterday, have triggered a steady, if slight, increase in demand for alternatives such as generators, gas cookers, rechargeable lamps and torches.
In a city-wide survey conducted by The Guardian yesterday, shop owners in many areas reported getting more inquiries on prices for generator sets and rechargeable lamps as Dar es Salaam residents, particularly small business owners seek to keep their stores lit during the crisis.
“whenever we have power cuts, demands shoots up,” said Game Stores Stock Controller David Benson during an interview at the discount retailer’s Mlimani City location.
Some businesses report that demand for rechargeable lamps and generator sets has been on the rise since April. So has demand for gas appliances.
“A lot more people are asking (us) for quotations for things like torches and rechargeable lamps” said Mwenge-based store owner Sultan Abdallah.
Most sales are to small-scale business owners, according to Game’s Benson, who said that this month alone he has sold over 200 mid-power generator sets, most to SMEs such as hairdressers and welding shops.
The surge in demand has had a relatively low impact on pricing of these items, electrical shop owners reports.
Christina Mlai, who sells rechargeable torches at Kariakoo said, prices have remained stable at around 4,500/- to 7,000/- per unit despite the fact that of lately, more people are asking about the product.
“many locals already keep a spare rechargeable lamp at home – in case of yet another power interruption,” said Abdallah, adding “they don’t have to buy another one – not yet anyway.”
Uhuru Street proprietor Hasan Miraji reported that genset prices remain unchanged because “most people had already bought generator sets during the first round of power cuts (earlier this year).”
However, opportunistic wholesalers and retailers in Kariakoo and at Dar’s City Centre have been charging a much higher price for generators over the past few days, blaming it on wholesale costs.
Kariakoo-based genset trader Mohamed Ally Shahib said that without any apparent reason, warehouses have been quoting to him a higher price for generators over the past few days – a price he has to pass on to consumers.
According to our survey, prices for a mid-power 3.5Kv genset have shot up to around 450,000/- from the usual price tag of 350,000/- per unit. “Tanesco has only just announced the power cuts, so I really don’t know what’s going on with these wholesalers,” said Shahib.
Miraji, on the other hand said wholesale prices for mid-range 1,000W gensets have remained stable at between 95,000/- and 120,000/-, depending on who you buy your kit from.
For some shop owners the power cuts have made business not worth the effort. several electrical goods stores in and around Mwenge Bus Stand and along Ubungo road had their shutters drawn most of yesterday, seemingly resigned to the fact that they’re making no money during these blackouts.
“When it’s so dark in here, nobody comes in” said Y2K Electric Store’s Jonas Mng’anya located at Mwenge, pointing out that he had very little shop traffic because at that particular time, he had no power.
Mg’anya, who sells consumables such as cabling and energy saver bulbs, said that clients won’t buy these items without first testing that they work.
“they won’t buy a thing if they can’t test it first” he said, echoing sentiments expressed earlier by another Mwenge-based trader, Zawadi Mkembe.
She had said that she feels TANESCO is neglecting small-scale businesses, cutting out power during the day when electrical goods shopkeepers such as her’s need electricity to demonstrate their merchandise to prospective clients.
“(To keep us) from going under, it would have been better if we had power cuts at night,” she said, adding: “You see me sleeping in here – I have no customers.”
Some cooking gas distributors have reported record sales over the past several months, attributing the upward trend to regular load shedding.
Bamaga Sales Representative Nuru Zuberi said her facility, which distributes gas products, has been processing significantly more orders in the period leading to the power cuts than it had earlier in the year.
Despite the steady rise in sales, unit prices have remained the same. “Sales are steadily rising, but gas price is where it was during the last increment back in December” she said.
Not all agree, however. Mwenge-based gas distributor Michael Lucas was quick to point out that his sales decline during power rationing, because his clients, many of whom are small business owners, face higher running costs and have less cash to spend on cooking gas.
“my client base shrinks (during blackouts) because of much lower cash circulation,” he said, adding: “we actually record higher sales when there isn’t any load shedding.”
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