Cape Town - Calls are being made for the government to provide “unconditional assistance” to SMEs whose businesses were at enormous risk because of unending load shedding.
This because of the devastating impact of load shedding on small businesses that has been witnessed across the country, with little to no relief provided.
The small business sector was arguably the most severely hit by the impacts of rolling blackouts as the majority of these businesses were highly reliant on electricity for their operations and now required alternative power sources to continue operating.
This was shared in research by the national Department of Small Business Development.
Minister Stella Ndabeni-Abrahams said the department and its agencies were urgently working on an energy relief package for the small, medium, informal and micro sectors. The details of the package were expected to be announced soon.
Inospace, which owned and operated serviced industrial and logistics parks with over 1500 small and medium-sized enterprises in Cape Town and Johannesburg, called on the government to immediately provide “unconditional assistance” to SMEs whose businesses were at risk of being annihilated by load-shedding.
Inospace CEO Jacques Weber said the relief measures considered by the department must be realistic and translate into financial assistance to relieve smaller businesses with their existing debts and payments.
“While load shedding persists, thousands of SMEs are staring down the barrel, contemplating shedding jobs, lowering production or possibly winding up. The SME segment of the economy does not have the means to get off the grid through costly alternative power solutions," said Weber.
The company has launched a “Living with Load Shedding” project to help clients minimise disruptions to business operations. This includes solar solutions, inverter options and generator advice to assist SMEs who required emergency assistance.
“We are calling on the government to step in to subsidise solar projects. Our project will offer discounted solar-driven power, in certain parks, as well as offering a range of other discounted products, alternative options, and advisory services,” Weber said.
The Cape Chamber of Commerce was in favour of the government assisting the private sector but believed the best way to do this was to deregulate the energy sector and allow private sector participation.
Chamber president Jacques Moolman said: “While we appreciate the frustration felt by SMEs, we are weary of a government-backed system of ‘unconditional assistance’ that may provide further opportunity for corruption.”