Business leaders in KwaZulu-Natal have expressed their concern over the ongoing blackouts, saying it poses a major concern for investors.
Eskom has announced that Stage 2 load shedding will be implemented until 5am Monday.
The provincial government and more than a hundred captains of industry met at Port Edward to strategize ways to boost the province’s economy and create employment.
More than a hundred business owners attended a two-day growth coalition workshop to share ideas and addressed issues that are of concern to them.
All these issues were tabled before the Premier of KwaZulu-Natal Sihle Zikalala. Issues related to Eskom’s blackouts and crime were at the top of the list.
These owners say these issues are impacting negatively on the province’s economic growth which was badly affected by the COVID-19 pandemic and last year’s July civil unrest.
Businessman Vivian Reddy says the blackouts are not conducive to investment.
“If we are going to attract more investments in this country and more especially in this province we have got to make sure that it’s very conducive to business and the power is a big problem. It’s not a great situation but we have confidence that it will be fixed but as business, we are going on renewables, we are trying to help the situation to make sure we generate our own power. My biggest problem with this power situation is if something goes wrong at Koeberg and then we’re going to go up to [Stages] 6 and 7 and then there will be major problems.”
Meanwhile, operations director of Forestry South Africa, Francois Oberholzer says the blackouts are causing a loss for most companies.
“A lot of our members have got back up generators running sawmills and with the current Russia Ukraine conflict, the oil price has gone through the roof so that affects their input costs into the generators and it’s chewing away at their profitability. We sit with the largest manufacturer of wood paper in the world here Sappi Saiccor and they don’t generate all their own electricity so they’re on the grid as well, so they’ll naturally be affected.”
Premier ZIkalala reassured investors that the province is stable following civil unrests in July last year. This after investors expressed concern about a similar incident reoccurring. Zikalala says a security system is in place.
“We have gone a long way to stabilise the province but also to improve the security system but more than that we are working also with the private sector to consolidate all security agencies and their own security strategy and work on one integrated strategy that protects all industrial areas and all businesses.”
Co-chair of the KZN growth coalition, Moses Tembe says South Africa needs to grow its economy by five to six percent in order for people to see a difference in their lives.
“Our main goal is economic growth. We’ve gone all out to identify what we call catalytic projects that are likely to move the middle the projects that are likely to impact the KZN economy better. As KZN growth coalition we’ve always believed that South Africa needs to grow its economy by five to six percent to achieve meaningful impact on the ground.”
Despite the current challenges, investors say they are committed to working hand in hand with the provincial government and to reinvest in the province to grow its economy.
Eskom has been implementing blackouts this week, starting at Stage 2 then progressing to Stage 4 due to lack of capacity. The power utility has moved to Stage 2 again.
Eskom asks for forgiveness as it places the country on Stage 4 rolling blackouts
