Registered users can save articles to their personal articles list. Login here or sign up here

Small business owners count the cost of SA power cuts

‘It’s devastating, absolutely devastating’ – Johannesburg Chamber of Commerce CEO.

When South Africa suffered unprecedented power cuts this week as flooding slashed thousands of megawatts off an overstretched grid, dry cleaner and shoe repairer Eva Ntleve had to stop work.

“It’s affecting us very badly,” she said at her store in the township of Alexandra, one of Johanneburg’s poorest, where small shops selling second clothes and phone credit line the streets.

“When the power goes off we can’t work, him especially,” Ntleve said, gesturing towards a man sitting next to an idle shoe repair machine. It’s like the spin washers, were taken out by crippling power cuts across South Africa this week.

A week of floods has aggravated problems at state-owned utility Eskom, which has been struggling to keep the lights on since 2008, triggering unprecedented levels of planned power cuts known as “load shedding”.

For bakery owner Maike Vandereydt-Speer it meant being unable to brew coffee, toast sandwiches or switch on the lights.

One of her two bakeries already has a generator — which costs at least R3 000 a day to run — but she had balked at the cost of installing one at her Black Forest bakery in the leafy Johannesburg suburb of Parkmore. Now she is considering it.

“If we do not have a generator we basically close down,” she told Reuters. “We hope the business can survive,” she said, noting that her business was losing R1 000 a day.

Economic fallout from the power blackouts is widespread with large-scale mining companies shutting down across South Africa on Monday, but they are better placed to weather the storm than more fragile smaller businesses.

“It’s devastating, absolutely devastating,” said the CEO of the Johannesburg Chamber of Commerce, Joan Warburton-McBride. “Especially at this time of the year when small traders were hoping for a turnaround to a very bleak year.”

Magur Patel, manager of a green grocer in Alexandra, told Reuters he was losing 20% of his income on every day there was a power cut — he had lost up to R20 000 this month, he said.

“The veggies I have are in the cold room, so when the electricity is not there … I lose some of them,” he said.

Back in Parkmore, locksmith Boris Milwidsky complained that he was running an expensive generator that didn’t produce enough power to run all his machines.

He estimated his losses from the purchase of costly generator fuel and lost output at around R60 000-R70 000 a day. He declined to say what his total revenue was.

“The generator can’t fuel everything,” he said. “Every single part of our business works on electricity.”

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

COMMENTS   2

To comment, you must be registered and logged in.

LOGIN HERE

Don't have an account?
Sign up for FREE

The ANC should be collectively held for treason against the country for the damage they have caused to millions of people. Wait for the tax hikes in Feb as they try and plug their fiscal holes. This will be the final nail in the coffin of our economy as Moody’s gives a big sigh and says “ we’ve given them every chance to succeed but they have failed at every turn – DOWNGRADE”

Parkmore, locksmith Boris Milwidsky, hemorrhaging up to R70000.00 per day in lost business and diesel costs for his key cutters

How many lost or forgotten keys is that daily?

Parkmore residents must have higher national average of amnesia

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
Insider GOLD
ONLY R63pm

Moneyweb's premium subscription is a membership service which will give you access to a number of tools to take charge of your investments.
Choose a yearly subscription at R630pa - SAVE R126

Get instant access to all our tools and content. Monthly subscription can be cancelled at any time.

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: