It is estimated that in 2020 alone, each stage of load shedding cost South Africa’s economy R500 million per day. In 2021, the Council for Scientific and Industrial Research (CSIR) cautioned that this would increase to approximately R15 billion.
In July this year, experts estimated that daily stage 6 load shedding had wiped more than R4 billion from South Africa’s gross domestic product (GDP).
According to Amanda Dambuza, chief executive officer of Uyandiswa, power disruptions crippled small, medium and micro enterprises (SMMEs).
“A sad reality, considering that the National Development Plan had pinned its hopes on SMMEs aiding in eliminating poverty and reducing inequality by 2030 through, amongst other plans, building an inclusive economy. Entrepreneurship is essential for any country’s development, especially in flailing economies. Innovative entrepreneurs hold the key to creating new jobs and increasing business competitiveness.
“Yet, if entrepreneurial challenges such as the lack of access to funding, mentorship and load shedding persist, up-and-coming entrepreneurs may be discouraged to partake in entrepreneurship, while up-and-running start-ups may succumb to the temptation to close shop,” she says
Dambuza warned that load shedding also negatively impacts the ability of incubation programmes to transfer the much-needed skills to SMMEs, specifically black female-owned.
“The beneficiaries of our incubation programme get access to premises and infrastructure, which have back-up power. This means they do not have to worry about rent or load shedding. Having the beneficiaries in our vicinity also allows for easy mentorship, collaboration and partnering.”
