Durban - It’s going to be the worst December in living memory for South Africans.
That is the message from business owners and organised business after power utility Eskom moved South Africa to Stage 6 load shedding on Wednesday, with a warning that the power cuts were set to persist for the next six to 12 months.
Durban businessman Janus Horn yesterday said he had to fork out R200 000 each month for diesel for generators to enable his establishment to function without any hiccups, labelling this as an expense that no one plans for.
Horn, who runs a top-end conference and accommodation facility which has been operating for 25 years, said in all his years of operation, he had not experienced anything equal to the current power crisis.
“We have been considering getting off the grid but for that one would need about R2.8 million to install solar panels and that is not money that is readily available, which is why load shedding is an expense that no one plans for,” he said.
He expressed concern that the bouts of power cuts will affect his profit margin, and his ability to pay bonuses to his staff this year.
“It is a time of the year when we look to do well, and staff have a reasonable expectation to get bonuses. This stage of load shedding means that there is very little to cheer about,” Horn said.
The businessman said while he could cope under the current circumstances, he feared that others would not.
Reacting to the latest developments, the Durban Chamber of Commerce and Industry (DCCI) said it was deeply concerned about the implementation of Stage 6 load shedding, noting its severe impact on the economy across crucial economic sectors resulting in the loss of productivity, leading to inevitable revenue loss.
“As organised business, we believe that the implementation of Stage 6 load shedding, with a possibility of it reaching Stage 8, will prove detrimental to the economy particularly during this festive season.
“The biggest concern is for the travel and tourism sector, which is already struggling – restaurants, hotels, B&Bs and other accommodation venues rely heavily on stable electricity,” said DCCI president, Prasheen Maharaj.
He said eThekwini Metro was battling with sewage spills that were already having a negative impact on the tourism sector.
Maharaj warned that load shedding would simply worsen the situation, resulting in depressed economic activity for the festive season.
“We believe the impact will be detrimental to small businesses, our SMMEs really look forward to the festive season with tourists who come into our city.”
Pietermaritzburg and Midlands Chamber of Business CEO Melanie Veness said the power cuts had the prospect of raising South Africa’s unemployment rate.
“This is possibly the worst time for Eskom to have declared and implemented Stage 6 load shedding. Factories are trying to fill year-end orders; retailers are in the middle of the festive season; and the tourism industry is gearing up for a much-needed high season. Everyone is trying to recover … It is honestly disastrous for our economy.”
Veness said if we reached Stage 8 load shedding, it would amount to the final nail in the coffin for a lot of businesses.
KwaZulu-Natal Growth Coalition’s Moses Tembe conceded that Stage 6 load shedding was a source of concern for businesses, but cautioned against making conclusive statements.
“We are in the first week of the month and it is early to say this is the worst December, because we are not even halfway through the month, nor have we measured the impact of this stage of load shedding on productivity for the month of December. But certainly, it is a worrying development,” Tembe said.
University of Zululand economist Dr Sheunesu Zhou said the latest stage of load shedding was the equivalent of an uninvited guest, noting that many businesses had targeted December as the month in which they could generate some profits.