66% of township businesses cut jobs due to load shedding – report

Eskom

Cape Town – Business owners have reportedly said they are struggling to stay afloat due to constant and crippling rolling blackouts.

According to Nedbank Insights Report, 66% of township businesses have cut jobs.

At least 64% of small township businesses cease operations during load shedding and almost 66% of business owners have cut jobs because of load shedding, the report conducted in partnership with the Township Entrepreneurs Alliance (TEA) said, according to News24.

The report quoted Sandile Sangweni, Kwamashu Business Chamber spokesperson as saying that those providing food services were the ones struggling the most.

“It’s the shisanyamas, the corner shops and the butcheries that are struggling because they stock perishable items that need cold storage. Power outages mean they can’t prepare food or store it. They end up having to throw away stock, and they lose money when they can’t serve clients. In the end, businesses are having to incur the extra cost of a generator or close their doors,” Sangweni said.

Other key findings were as follows, according to IOL

  • Load shedding has led to increased operating costs, lost revenue and declining margins, therefore affecting profitability;
  • Solar is the most preferred alternative energy option (although generators are the most used), but most businesses don’t know where or how to start looking for this solution;
  • Business challenges caused by power cuts are having an impact on mental health, resilience and the entrepreneurial ability to hustle.

This comes as Eskom announced on Monday that Stage 5 load shedding was on the cards later on Tuesday.

The struggling utility said that “Stage 5 load shedding will be implemented from 16:00 [on Tuesday] until 05:00 on Wednesday.

“The delays in returning a unit to service at Camden, Lethabo, Kriel, Medupi and Tutuka power stations have contributed to the capacity constraints. Further, the expected increase in demand after the Easter weekend will put additional strain on the power generation system and may require an additional increase in the stage of load shedding at short notice,” Eskom said.

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Compiled by Betha Madhomu

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