Township business owners say they are struggling to stay afloat amid constant and crippling rolling blackouts.
This is according to a Nedbank insights report conducted in partnership with the Township Entrepreneurs Alliance titled ‘Impact of load-shedding on small businesses in the township economy’, which surveyed more than 200 small businesses across South Africa.
The survey intended to quantify the impact of load-shedding on small businesses in township communities, unpack the drivers behind the impact and finally draw insights to help develop alternate solutions.
The key findings included that 64% of township small businesses cease operations during load-shedding and solar was the most preferred alternative energy option although generators were the most used. Also, business challenges caused by power cuts were having an impact on business owners’ mental health, resilience, and entrepreneurial ability to hustle to name a few.
To discuss the research report findings and explore affordable alternate solutions to navigate the impact of load-shedding on township small business owners, industry experts held a panel discussion at Riversands Incubation Hub on March 30.
The panel was facilitated by energy economist Lungile Mashele and included Nedbank’s solution innovation managing executive Dayalan Govender, founder of the alliance Bulelani Balabala, green economy specialist and green hydrogen lead in the Investment and Infrastructure Office of the presidency Masopha Moshoeshoe, and the chief lending officer at Hohm Energy Franc Gray.
“Given that spaza shops contribute around 6% of South Africa’s GDP, employ 2.6 million people, and represent an economy of around R600 million, the results are troubling and require a response from both the private and public sectors,” said Govender.
The impact of load-shedding on this sector goes beyond simply the numbers.
The compound effect of Covid-19 lockdowns, the July 2021 unrest, intensified load-shedding, and increasing water constraints were reported to be putting a strain on the mental well-being of business owners and their employees.
“Despite the incredible hustling resilience of these business owners, there is a sense that people are starting to give up because it feels as though they are fighting a losing battle,” Mogale added.
“When resources such as electricity and water become unavailable, deprivation can lead to hopelessness. This points to the need to support small businesses in dealing with mental health.”
Moshoeshoe said such conversations were important as they enabled a broader understanding of the daily disruption to livelihoods.
Related Article:
