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Energy & Infrastructure

Week-long load shedding cuts Rajshahi industrial output by half

Week-long load shedding cuts Rajshahi industrial output by half
Illustrative image, not of the subject of this story. · Photo: Chris Liverani

A full week of load shedding has cut industrial output in half in Rajshahi, and while that sentence describes a Bangladeshi city most South African business owners could not place on a map, the supply chains running through it reach considerably closer to home than the distance suggests. According to a report in The Financial Express, the immediate impact lands hardest on manufacturers supplying overseas markets, which includes South African firms importing textiles, chemicals or machinery from Bangladesh.

Load shedding here means the same thing it means anywhere: scheduled power cuts imposed when generation cannot meet demand. In Bangladesh that typically happens during periods of low water levels affecting hydro plants, maintenance outages at gas-fired stations, or grid strain from high summer temperatures, with regulators rotating outages across regions specifically to avoid a total blackout rather than a partial, managed one.

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Rajshahi is a genuine industrial hub, home to a concentration of textile mills, food-processing plants and light engineering workshops, all of which depend on stable electricity in ways that make even short interruptions costly: machines stop mid-run, perishable goods spoil, and equipment wears faster under repeated stop-start cycles than it would under continuous operation. The Financial Express did not publish exact figures beyond the headline output drop, but a claimed halving of production across most sectors describes a genuinely severe disruption, not a routine dip.

South African companies sourcing finished products or intermediate inputs from Rajshahi may see delayed shipments, higher costs, or real pressure to find alternative suppliers at short notice. Exporters of South African raw materials such as cotton, chemicals or steel could see reduced short-term demand from Bangladeshi buyers scaling back production, while firms selling to Bangladeshi end-users, packaging providers, for instance, may see a temporary dip in their own order books as local manufacturers pull back.

What remains genuinely unclear is which industries were hit hardest, how long each individual outage ran, and whether these were planned rotations or emergency measures forced by a genuine supply crunch. Those details depend on further statements from Bangladesh’s Power Development Board or the factories themselves, neither of which had spoken publicly at the time of this report.

SME owners with any supply-chain exposure to Bangladesh should keep a direct line open to their Bangladeshi partners, consider building inventory buffers where that is financially feasible, and look at short-term alternative sourcing across other South Asian manufacturing hubs if the disruption drags on. Keeping an eye on Bangladesh’s energy-policy announcements, new renewable capacity, gas import deals, can also help anticipate the next reliability issue before it becomes this week’s headline. More broadly, the incident is a useful, if uncomfortable, reminder that a manufacturing hub built on a single, fragile power source is a risk that eventually shows up somewhere else entirely, in this case on the desk of a South African importer several thousand kilometres away.

Bangladesh’s garment and textile sector, of which Rajshahi is a meaningful part, is one of the largest in the world by export volume, supplying major international retailers alongside the intermediate-goods trade that reaches South Africa. That scale is exactly why a week-long, halved-output event registers beyond Bangladesh’s own borders: global apparel and textile supply chains run on tight margins and tighter delivery windows, and a disruption at a hub feeding that system tends to cascade through purchase orders and shipping schedules well before it shows up as a headline in a country several thousand kilometres away. South African importers who have diversified their sourcing across multiple countries rather than concentrating it in one region are, in moments like this, the ones who feel the least pressure to scramble.

This report is based on a wire report from news.google.com.