The recent round of rolling blackouts plaguing South Africa, and uncertainty about the longer-term power supply situation in South Africa are having a devastating impact on business, says South African Chamber of Commerce and Industry (Sacci) CEO Alan Mukoki.
Although Eskom does not expect to implement load-shedding this week, people and businesses across the country have been negatively affected by load-shedding in recent weeks.
The Small Business Institute (SBI) on Monday echoed Sacci’s sentiments and called on government to redouble efforts to resolve the rolling blackouts, which it said are having a crippling effect on small businesses in the country.
Sacci, meanwhile, called on government to employ “the right, most competent and highly experienced people in resolving the problems of Eskom”, adding that it “can no longer be business as usual”.
Mukoki said steps to resolve the problems should include a review of whether the current allocation of people, systems, capital and ideas are adequate.
Both organisations are concerned about potential job losses and business closures.
The recent media conference by State-owned Eskom and the Department of Public Enterprises did not assist businesses in gaining any confidence, said Mukoki, highlighting that, while the media conference was long on identifying and explaining the problems at the embattled power entity, the presentation was short on effective solutions with clear timelines.
“We are none the wiser in knowing when and whether this big risk is going to be resolved permanently,” Mukoki lamented on Monday.
At the same time, the SBI is calling on Eskom and the Thaba Chweu local municipality to abide by the decision of the North Gauteng High Court to stop disrupting electricity supply in the eMalahleni area arising from disputes between Eskom and the municipality over outstanding debt owed to the power utility.
"Our members have been sharing painful stories of the effects of [power interruptions] on their businesses, customers and employees,” SBI executive director Bernard Swanepoel stated.
Smaller firms, which are expected to create 90% of South Africa’s jobs in 2030, are more vulnerable than their larger peers, as they are not in a position of investing in alternative sources of energy during periods of load-shedding, he added.
“If the situation is not resolved urgently, we are headed for a devastating winter. And our economy, which has yet to recover from years of policy instability, will be dealt another blow.”
As a member of Business Unity South Africa (Busa), the SBI also stated on Monday that it supports Busa’s intervention to reach out to the government with a view to finding short- to medium-term solutions to the energy crisis.
While waiting for the feedback promised by Public Enterprises Minister Pravin Gordhan, the SBI is urging everyone, including big business, to think creatively about alleviating the impact of power interruptions on small businesses.