On Sunday, Eskom reintroduced load shedding since the one that occurred in December of 2018.
The negative impact of this ordeal will affect small businesses in different sectors and according to the industry’s representative and analysis, it has been announced that due to the continuation of pressure on the national grid the power utility will rise to stage four load shedding from 13:00 to 22:00 on Monday. The load shedding will not only affect South Africa but extend to Mozambique as well.
Chairman of Agri SA’s centre of excellence for economics and trade, Nicols Jansen said that electricity continues to be an important input cost for many farmers, especially farmers that depend on irrigation. The load shedding will affect input-reliant and energy intensive industries like the diary, poultry, grains and agro-processing industry.
“This will also affect the jobs of the other workers especially in the heavy industries and it is time that workers whose jobs are at risk raised their voices. I can see foreign investors turning away and looking elsewhere for investment opportunities,” said Jennie Myburg, the President of the Cape Chamber of Commerce.
South African President, Cyril Ramaphosa confirmed that Eskom will be divided into three State Owned Enterprises (SOEs) during his State Of the Nation’s Address. Eskom is in a deep financial and operational crisis, with a debt burden of R419bn, making the company unable to service from the revenue it earns. The company is also unable to keep the lights on throughout the country with multiple breakdown of its old plant due to neglected maintenance.
“To ensure the credibility of the turnaround plan and avoid a similar financial crisis in a few year’s time, Eskom will need to develop a new business model,” said Ramaphosa delivering his SONA speech in parliament.