Significant drop in daily earnings

Ongoing water and electricity outages are having a direct impact on businesses that rely on energy from Jirama, Madagascar’s state utility company.

This is particularly evident among small and medium-sized enterprises (SMEs), whose owners are voicing frustration over significant drops in revenue. In addition to the high monthly bills they are required to pay, they must also contend with the subpar services provided by the state-owned company.

Businesses such as internet cafés, hair salons, and bakeries essentially, most SMEs are heavily reliant on electricity. Lacking the resources to invest in generators, these businesses are forced to halt operations for several hours due to the rolling blackouts. What makes the situation worse is that these businesses cannot expect any compensation from Jirama. In fact, despite the frequent power cuts, their utility bills remain as high as during periods when the electricity supply was stable.

According to Setraniaina Rija Rakotonirina, President of the Association of Internet Cafés and Users of Madagascar (Acybimad), SMEs have been severely affected by the current situation. He notes that daily revenues have seen a sharp decline. To cope with the energy shortages, many internet cafés and hair salons have opted to invest in generators.However, this is a costly and risky move, as these entrepreneurs are forced to raise their prices to offset the additional expenses.

Water shortages have also taken a toll, and no one is spared, even households with a direct water connection. But the burden is felt most by laundry workers in public wash areas, who are often forced to queue up with yellow jerry cans early in the morning, risking aggression or theft in the process.