The impact of load restrictions on SMEs can be felt beyond the hours of darkness.
Photos by Gallo Images / Fani Mahuntsi
- Small business owners are afraid that stores may have to be closed if the load continues to be reduced.
- Many township companies are already losing money due to power outages.
- The outage is weakening efforts to grow the economy and create jobs, says the Cape Chamber of Commerce.
The owners of small businesses in Cape Town’s township are feeling the impact of load restrictions beyond the hours of darkness.
According to the local business forum, the loss of revenue has forced companies to close branches and reduce staff as they struggle to maintain revenue during the sixth stage of load reduction.
Mzee Kutta of the Khayelitsha Business Forum said that many township companies are feeling the economic impact of the time lost due to load reduction.
He added that when electricity goes out, businesses make less money, but are still expected to pay the same rent, which puts a strain on SMEs.
Kutta is personally influenced by the reduced load. He owns many laundry and had to close one of his branches.
He said:
There is a lot of uncertainty. People have less money because they can’t work. Due to the effects of load restrictions, people are being asked not to go to work or are tightening themselves.
Fellow business owner Agnes Maeki said her construction company may have lost the bid because it failed to submit the documents on time.
“It has a big impact on us. We can’t do anything. We can’t print or quote. There are dates when we have to submit documents for bidding, especially if we don’t have electricity.” She said.
Not only does Maeki lose the business, but the staff also feels a pinch because they can’t work during normal hours.
Read | Let’s take a look: how SA’s worst year load reduction was done
Siseko Mngxali of the Langa Business Forum states that load relief has had a significant impact on businesses in all sectors.
“For example, some of our members own a sports bar where people come to watch TV. However, due to the reduced load, the TV is damaged and the refrigerator is broken. Repayment. No one is there. Dropped out and people won’t come to the sports bar. “
He also added that food vendors have also been severely affected and will run out of stock when the refrigerator is turned off.
“Very destructive”
“For small businesses that rely on refrigerators, load reduction has a very negative impact. No one will compensate them for their losses if they run out of stock,” Mngxali said.
He said some businesses could be forced to close due to the losses caused by the reduced load, adding:
This means a loss of revenue for our community. Township businesses are interrelated and are sourced from other businesses in the region. When Shisanyama closes, the supermarket that bought the meat will be affected. It has a domino effect.
Mlugnisi Mazana of the Guglez Business Forum said small businesses are more likely to be affected by power outages than large companies, especially if they are unable to do business.
“The uptime lost due to load restrictions has a significant impact on the income of small business owners, which has a spillover effect and forces businesses to abandon their jobs,” Mazana said. rice field.
He added that ambitious business owners are likely to be discouraged when they witness the impact of reduced load on businesses in the community.
“People respect small business owners and may want to follow suit someday, but when they see the business shut down, they decide to put a brake on their dreams. Let’s do it.
Read | Rolling blackouts: the dark reality of small business owners fighting to stay high
Jack Murman, chairman of the Cape Chamber of Commerce, said the burden reduction “has caused a great deal of turmoil in the economy and society as a whole.”
“SMEs are particularly affected, undermining the government’s mission to grow the economy and create jobs, especially in the hospitality sector, which is the hardest hit because micro enterprises are often underfunded. It undermines major job creation departments. Emergency response plans such as backup power for generators. “
“It costs a lot of money for businesses,” said James Foss, a member of Cape Town’s economic growth department. He was forced to divert his finances from necessities, such as increasing staff to continue purchasing equipment. ” “.
“Cape Town is currently the only municipality that can limit load limits in supply areas by increasing reserves from a well-maintained Steenbras pumped-storage power generation program,” he said.
“The current situation again shows how much Cape Town needs to reduce its dependence on Escom as soon as possible. Many related to the city’s own construction, small embedded power sources, wheeling and independent power generation. Work is already underway. Producer program. “
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