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The Role of Reliable Power in Manufacturing Investment Decisions

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M&J Africa November 5, 2026

A new production line earns its return through saleable output. If the site cannot keep the line running, a factory may recover fewer units from each shift and spend more on every unit it delivers. Before committing to a site or a machine, test whether the plant can produce reliably enough to meet orders and repay the investment.

What Zimbabwe and South Africa show

The Confederation of Zimbabwe Industries’ 2025 manufacturing survey drew responses from 388 manufacturers across all ten provinces. Reporting on the survey, ZBC put sector capacity utilisation above 56% in 2025. That figure describes overall use of manufacturing capacity. It does not isolate power-related losses, so a site assessment still needs to separate outages from weaker demand, equipment downtime and other constraints.

A 2026 study in Energy Economics compared South African manufacturing firms with different exposure to the electricity crisis. It found lower capital investment and disrupted exporting, with more severe effects in vulnerable, energy-intensive sectors. The Zimbabwe survey describes sector conditions, while the South African study examines firm outcomes linked to the electricity crisis. The two sources measure different things and cannot rank the countries by power reliability.

CZI manufacturing survey overview • ZBC survey coverage

Energy Economics study on South African manufacturing

Count the production lost after the power returns

Measure the time from interruption to the first batch that passes quality checks. A short outage may still spoil material, require cleaning or force operators to restart equipment in sequence. Separate output that can be recovered on a later shift from orders that will be lost. Recovered output may require overtime or expedited freight. Lost orders reduce the contribution the plant would have earned.

Compare backup options against the production schedule

Start by identifying which loads must continue and which can wait. Motors, cooling, extraction and controls can have different needs for start-up power and continuity. Compare each option against the duration and timing of site outages. Include installation, fuel or charging, servicing, replacement and downtime that the backup system cannot prevent. Use total cost per saleable unit and the ability to fulfil orders as the comparison measures.

An example from a packaging plant

Suppose a packaging manufacturer is deciding whether to add a second line. Its outage log shows that interruptions stop the line and spoil material during restart. One option is to keep controls running and shut down safely. That reduces restart losses but still leaves production paused. Another option is to back up the line and its essential auxiliary equipment. That preserves more output, provided the system can cover the outages that disrupt production.

Finance can compare both options with deferring the second line. In each case, forecast saleable output, backup costs and delivery performance under normal and extended outages. If recovered production only moves to a later shift, count the cost of catching up. If unreliable delivery would put a customer contract at risk, test that downside separately. The decision then reflects what the site can deliver and the margin it can retain.

If you are evaluating a new manufacturing site or production line, enquire with M&J Consultants for a tailored quote to assess downtime, backup costs and the effect on your investment case.

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