Load shedding is now a significant issue in South Africa since the rising power disruptions have a negative influence on the economy's essential sectors.
As a result, lengthy power outages endanger businesses and sectors that rely on dependable electrical power. This is according to finance expert, Michelle Austin.
“Load shedding is common in South Africa. It does not just hamper normal life but can have major economic consequences. First off, South Africa's economy is heavily reliant on reliable energy. Therefore, these power crises will result in many businesses and industries being disrupted,’’ says Austin.
Austin pointed to the manufacturing industry, saying load shedding will negatively affect production lines.
‘’The tourism sector will also be severely impacted because most hotels rely on lights, air conditioning, security systems, and other electrically driven gear,’’ she said.
Austin says power disruptions will jeopardise economic growth in the following ways:
Unemployment
The electricity crisis brought about by load shedding can result in lower production and efficiency for many South African enterprises and industries.
As a consequence of the shortened hours, there may be numerous lay-offs as well as reductions in profit margins for present employees, further deteriorating living conditions for some South Africans.
Food security
Fresh and consumable food will be in short supply due to load shedding. Farmers will be unable to cultivate and harvest food because farming machinery requires electricity to operate.
Farmers also require cold-storage facilities to keep food. Food will deteriorate if there is no cold storage, resulting in less availability of food.
They will have to pick between solar-powered storage and diesel generators in order to sustain operations. Food storage and manufacturing will grow more expensive as a result.
Infrastructure
South Africa’s infrastructure is deteriorating, which is made worse by the limited access to electricity. Infrastructure, including road lights, toll gates and water waste systems will be compromised because they require energy resources for upkeep and operation.
Additionally, housing developments that depend on energy will be compelled to stop building or deal with inadequate power supply services.
This may result in increased building costs being passed on to consumers, increasing inflationary pressures.
Cellular networks
Heavy load shedding will also have an impact on network providers from all angles, jeopardising their efficiency and increasing prices. Because cell tower operators must recharge their batteries to retain connection, load shedding will make it more difficult for them to keep their towers functioning. As a result, people will be unable to communicate.
Additionally, with frequent power outages, maintaining network connectivity may become prohibitively expensive for network operators.
As a result, cost increases will be passed on to customers, putting a hardship on those who cannot afford the higher rates.
IOL Business