• News
  • Sport
  • TV
  • Radio
  • Education
  • TV Licences
  • Contact Us
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • FEATURES
  • OPINION
No Result
View All Result
1
Home Eskom rolling blackouts

Loadshedding will negatively affect SA’s economic recovery: SACCI

9 June 2021, 4:36 PM  |
SABC SABC |  @SABCNews
Shop owner sits next to a candle during power outage

Shop owner sits next to a candle during power outage

Image: Reuters

Shop owner sits next to a candle during power outage

The South African Chamber of Commerce and Industry (SACCI) says the current loadshedding crisis will have a huge impact on South Africa’s economic recovery from COVID-19.

Eskom on Wednesday afternoon announced it would be implementing Stage 4 loadshedding because of additional generating unit breakdowns and high winter demand.

Eskom spokesperson Sikonathi Mantshantsha explains Stage 4 loadshedding: 

Job losses

The Chamber, which represents more than 20 000 small and medium-sized businesses, warns that companies are struggling with the current power cuts and this will lead to additional job losses.

“We have seen the GDP improving obviously of a very low base given COVID-19 in the last year. But Eskom really gives a significant danger in that economic recovery. It’s a situation, if it prevails, that people will lose a lot of jobs because businesses cannot sustain. We are still in a lockdown somewhat and people are only beginning to see some light at the end of the tunnel, the vaccination program, and what we actually can’t have now is a huge energy crisis,” says SACCI Chief Executive, Alan Mukoki.

Several units at Medupi and Duvha were reported out of action on Wednesday. This plunging most parts of the country into another darkness and a cold evening for 8 hours.

Stage 4 will see South African households and businesses without power for at least 4 hours on a rotational basis.
Economists say that loadshedding costs the country’s economy R17-million loss per hour.

‘Urgent solution’

Economists share the same sentiment that persistent loadshedding will cripple South Africa’s economic recovery if there is no urgent solution being found to the planned power cuts.  Economist Mike Schussler says loadshedding is very bad for the economy.

“When we have loadshedding in South Africa, every kilowatt-hour passes R17 is lost to the economy. You are probably talking R17 million per hour lost to the economy in the daytime, it’s a bit more and at night it’s a bit less. If the loadshedding continues at Stage 4 pace it’s going to be damaging to the economy. Obviously, with four stages, we are looking at an R68 million loss. But if the loadshedding continues, it is going to be very damaging to the economy and in some cases, even water shedding is against us.”

‘Detrimental to all types of business’

Business Unity South Africa (BUSA) says stage four load shedding will have a detrimental effect on businesses as they are still trying to recover from the COVID 19 pandemic. BUSA CEO Cas Coovadia says this is bad for an economy that is already on its knees.

“In an economy that’s barely growing, the business has just started coming out of COVID. And we are in a midst of a third wave of COVID now. And we have been warned by Eskom that this is going to take a while. Not having power is detrimental to all types of business.”

In the video below is the reaction to stage 4 loadshedding by Energy Expert Ted Blom:

Here is a bird’s-eye view of Johannesburg as Stage 4 loadshedding hits SA: Mbongeni Muthwa

Share article
Previous Post

Cosatu, Fedusa leadership to hold talks on public wage negotiations

Next Post

Pupil, screener suspended following violent scuffle at Northern Cape school

Related Posts

FILE PHOTO: Representations of virtual cryptocurrencies are seen in this illustration taken November 28, 2021.

Crypto entrepreneur Do Kwon indicted in US following Montenegro arrest

24 March 2023, 9:37 AM
Minister of electricity, Kgosientsho Ramokgopa, at Lethabo Power Station, during countrywide site visits to power stations.

Electricity Minister continues power station visits

24 March 2023, 7:52 AM
Worker installing solar panels on the roof of a home

Cape Town’s power plans kick off next week

24 March 2023, 6:51 AM
Newly appointed Electricity Minister, Kgosientsho Ramokgopa.

Ramokgopa says Lethabo power station is performing well

23 March 2023, 6:01 PM
A local walks past electricity pylons during frequent power outages from South African utility Eskom, caused by its aging coal-fired plants, in Orlando, Soweto, South Africa, September 28, 2022.

Judgment reserved in load shedding case

23 March 2023, 4:10 PM
SARB logo

Interest rate hike inevitable: Economists

23 March 2023, 5:34 AM
Next Post
The department has suspended both the screener and the learner, saying it's investigating reports that the learner also attacked the screener with a knife.

Pupil, screener suspended following violent scuffle at Northern Cape school

Most Viewed

  • 24hrs
  • Week
  • Month
  • UPDATE | Court hears evidence regarding Zuma’s medical records
  • Unions set the record refute wage settlement agreement reports
  • SABC News crew attacked on N2 while monitoring protests
  • BREAKING | EFF members arrested after clashes with police in Braamfontein Sunday night
  • Police making progress in AKA’s murder case
  • Corporates prepare for a possible national blackout
  • UPDATE | Court hears evidence regarding Zuma’s medical records
  • Unions set the record refute wage settlement agreement reports
  • SABC News crew attacked on N2 while monitoring protests
  • Wits SRC sued
  • ‘Any attempt to arrest Putin would be declaration of war on Russia’
  • VIDEO: Vladimir Putin must be allowed to attend BRICS Summit, says Malema
  • VIDEO: EFF media briefing following March 20 national shutdown
  • Five killed in oThongathi shooting
  • Koko accuses state of delaying tactics in his corruption case

LATEST

  • Sport

LIVE: I have asked the Tourism Board if Tottenham deal has been cancelled, says De Lille


Chairs with SABC logo.
  • South Africa

Sanef warns of repercussions for the SABC without a board


Taxi marshal standing next to a taxi at a rank.
  • South Africa

Stern warning to those who blockade roads during protests


LGBTQIA+ Flag flying
  • Africa

UNHCR slams Uganda’s anti-homosexuality bill


[File Image] : Argentina's Lionel Messi celebrates scoring a second goal with teammates
  • Sport

Messi leads Argentina win over Panama in first game as world champions


FILE PHOTO: Russian President Vladimir Putin attends a meeting with Chinese President Xi Jinping in Beijing, China February 4, 2022.
  • Opinion

China, Russia, nail their colours to the mast


Weather

  • About the SABC
  • Contact Us
  • Jobs
  • Advertise
  • Disclaimer
  • Site Map

SABC © 2023

No Result
View All Result
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • FEATURES
  • OPINION

© 2023

Previous Cosatu, Fedusa leadership to hold talks on public wage negotiations
Next Pupil, screener suspended following violent scuffle at Northern Cape school