We need to appreciate just how bad things have become in SA and make a concerted effort to address the challenges. In a country with high unemployment, stagnant growth and increasing poverty, we need to realise that we are truly standing on the edge of the precipice.
Realising the role of energy as an input to production and enabler of economic growth, we need to get to a point where we agree that the energy crises requires a commercial and technical solution rather than a political one.
SA needs to get to a point where its state owned enterprises are run like actual businesses from a governance and commercial perspective. Fifteen years of the same problem with no end in sight simply highlights the institutional and leadership capacity deficit in SA.
The reality is that Eskom is a critical enabler of economic growth and development. Load-shedding disrupts people, businesses and various other areas of the country in general that are dependent on electricity. We need a serious paradigm shift in our thinking. It is time to make opportunities available for capable individuals and subject the matter to experts to turn things around.
In addition, we need the government to work towards clearly understanding the role of the board of Eskom in terms of oversight and governance, and work towards addressing the real issues behind Eskom’s demise, such as corruption, inefficiency, poor maintenance and supply chain practices, most of which extend beyond the board.
Something needs to be done, fast. The future of SA depends on it.
• Ngcobo, a business development professional, is a member of the steering committee of the Indlulamithi SA Scenarios 2030 project.
There seems to be no light at the end of the tunnel when it comes to Eskom and SA’s energy crises. It has been 15 years since load-shedding started, and over the years the problem has only deteriorated.
This is a problem because energy is a critical enabler and input for economic growth for any society or country. The lack of reliable electricity supply in SA has a devastating effect on the productivity of individuals and businesses across the country, with small, medium and micro enterprises (SMMEs), as well as freelance workers, being the hardest hit.
Since 2007, load-shedding in SA has become progressively worse. Data collected by the developers of the EskomSePush app revealed that the number of load-shedding hours and use of open-cycle gas turbines has increased significantly over the past six years. Over the same period the energy availability factor has decreased significantly.
These load-shedding statistics are key indicators on just how bad the situation is, and the trend further indicates that the situation is not getting any better. Also concerning is the frequency with which Eskom implements stage 6 load-shedding, which South Africans have now experienced twice in 2022 alone.
The energy crisis in SA has already obliterated many SMMEs. Take for example the Orlando Corner Shop, one of the last remaining black-owned supermarkets in Soweto, which was founded in 1973. The shop deals in several types of frozen food products, beverages and other fast-moving consumer goods. One of its best sellers is items from its chip and kota kitchen.
However, over the past two weeks the shop has had to close its kitchen repeatedly due to the unreliable electricity supply and consequent damage to its chip fryer. In addition, it has had to dispose of thousands of rand worth of foods and dairy products as a consequence of load-shedding.
The high cost of running a small business in Johannesburg and diminishing disposable income from consumers, as well as stock and revenue losses resulting from load-shedding, have caused the business to decline drastically.
Businesses are not alone in being adversely affected by load-shedding. Individuals who run service-based businesses, including online teachers, graphic designers and freelancers, have been severely affected as well, with many more who have been working from home since the Covid-19 lockdowns also taking a hit.
Many people who were working from home have been forced to return to the office due to the frequent power disruptions. This is an issue in a world that is expected to gravitate towards digital and virtual platforms over the next decade. These challenges leave me wondering how SA expects to compete in an ever-changing world when we can’t even get the basics right.
The fallout from SA’s energy crisis is normally quantified in terms of GDP and other economic metrics. Although this is a good approach, we need to start delving into the deeper, more personal stories to really understand just how load-shedding has affected South Africans, especially vulnerable people and businesses who fight for survival on a day-to-day basis.