Load shedding is having a detrimental impact on investments and jobs in Nelson Mandela Bay, with one in five businesses reporting that they have cut jobs and over 90% halting investment and expansion plans.
This is according to a survey done by Nelson Mandela Bay Business Chamber, which also stated that with no end in sight to constant load shedding, more than a third of businesses surveyed consider restructuring or relocating unless there is a significant improvement to the energy crisis.
Thus, the Nelson Mandela Bay Business Chamber has called for urgent implementation of strategies to mitigate the impact of load shedding on business.
“The fact that 91% of businesses surveyed have put plans for future investment and expansion on hold, and 36% are considering relocating out of the metro or leaving South Africa entirely, does not bode well for the sustainability of the local economy and job creation into the future,” said Denise van Huyssteen, Business Chamber chief executive.
The survey which incorporated the participation of around 70 local businesses, focused on the impact of extreme load-shedding on their operations and revealed that 75% of local businesses had been forced to implement short-time, while 18% reported job cuts amounting to 149 jobs lost in recent months. The representative sample of local businesses was evenly split between large corporates and small and medium enterprises (SMMEs).
“The results of the survey were concerning for the Bay’s already-strained and highly manufacturing-dependent economy,” said Van Huyssteen.
“Our local economy is heavily reliant on manufacturing, which makes up 21% of local business and employs thousands of people, as well as having a substantial downstream economic impact through supply chain linkages, in turn impacting on the services and retail sectors, including small businesses.
“Retailers, hospitality, and other small businesses often simply don’t have the resources to install generators and other alternative energy solutions, and are incurring substantial losses of products, perishable goods, and feet through the door.”
Van Huyssteen said the survey had shown that a diverse set of solutions to mitigate the impact of load shedding on business was needed, owing to the differing needs and resources of different types and sizes of business.
“There is no one-size-fits-all solution. The impact of load shedding has a massive ripple effect through all levels and types of business.
“We need to be urgently exploring all options. The municipality’s agreement to a voluntary 24-hour load shedding schedule for those manufacturers which meet the required criteria is helping to mitigate some of the impacts of frequent stop-start for those companies.”
The Chamber started a renewable energy cluster last year, which has attracted the participation of some of the Metro’s highest energy users, representing approximately 20% of the Metro’s electricity usage. This cluster is working on potentially bringing 100 MW on to the grid during the course of 2025.
