Eskom’s load shedding, particularly in September, took away more than 50% of informal traders’ income, a problem compounded by the lack of energy backup solutions in the informal economy, according to a report by research and marketing firm, Yazi.
The Cape Town-based firm, in a report noted that more than 40% of respondents indicated that their loss of income, as a result of load shedding, ranged between R1 000 to R5 000 per month.
Last month Eskom data showed that South Africans were hit by their worst-ever month of load shedding in September, with a total of 1 503GWh estimated to have been shed, and with 572 hours of the month’s 720 hours directly affected.
Yazi CEO Timothy Treagus said: “In most cases, this would constitute a loss of over 50% of informal traders’ income. About 91% of respondents indicated that they don’t have access to a UPS, inverter or backup battery system in their homes or businesses.
“In September, just over 24% of respondents were unable to work for six or more hours per day, while 75% recorded an inability to get to work on time, as a result of traffic lights being out.”
Over 58% of survey respondents operating within the informal economy said they have had to replace their alarm systems, fridges, freezers, stoves as well as a number of other electronic appliances and devices due to damage caused by repeated bouts of load shedding.
“The findings paint a dismal picture of how an erratic power supply has plunged vulnerable communities into darkness, with increasing levels of poverty, crime and hunger,” said Treagus.
It points out that up to 40% of respondents operating in the informal market have had to buy between R200 and R400 of additional data in September to avert being disconnected from any online activities during load shedding. With close to 60% of respondents earning below R6 000 per month, the data shows that up to 7% of their income had to be re-purposed and re-budgeted to ensure their continued connectivity.
This, the report noted, severely impeded South Africa’s poorest from making full use of all the benefits and opportunities that have been made available by the fourth industrial revolution, and severely hindered any progress being made to make our digital economy more accessible to our informal market, widening the gap of South Africa’s digital divide.
“Increasing data costs and blackouts have negatively impacted our informal economy’s ability to do business online, while also limiting respondents’ access to online courses and study resources. Matriculants have been particularly hard hit in this regard as well,” Treagus said.
He said overall, the report revealed that Eskom’s blackouts had harmed and debilitated South Africa’s informal economy from achieving any degree of growth towards the end of 2022.
This has been characterised by the fact that the informal market simply could not function without access to power and electricity, causing extreme financial and mental distress – and in some cases, loss of life as well.
“It is clear, by respondent accounts, that citizens are feeling demotivated and distressed. It is clear that load shedding is driving the most vulnerable members of our society into deepened cycles of poverty at an unprecedented rate, as their businesses and livelihoods are destroyed by an erratic power supply,” Treagus said.
Last month, as Finance Minister Enoch Godongwana tabled the Medium-Term Budget Policy Statement, he lowered the country’s gross domestic product (GDP) growth projections until 2024, in part a reflection of a global slowdown, high inflation and recurrent power cuts in the country.
“We now expect real GDP growth of 1.9% in 2022, compared with an estimate of 2.1% in February,” he said.
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