Load shedding for up to six hours per day is costing businesses, especially small, micro and medium enterprises (SMMEs) a load of money in lost income or extra expenses for alternative power sources.
This, combined with the sharp increase in fuel prices, has many businesses struggling to balance the higher expenditure and lower income to make ends meet.
Those fortunate enough to afford generators are faced with the extra cost for fuel, a commodity that currently costs R26,31 for unleaded petrol and R25,40 for diesel (R500 pp/m) compared to R17,20 for unleaded petrol during July 2021 and diesel at R15,08. This translates to an increase of R9,11 in the petrol price while diesel costs R10,32 more than the same period in 2021.
Those who cannot afford or are unable to run a generator for various reasons have to pay the price of closing their business and losing valuable income during load shedding.
René Burke, owner of ProCom Printers in Hermanus, voiced many small business owners’ frustration when she stated: “I have so many mixed emotions – gatvol, angry and enough is enough. During the 2018 riots in Hermanus businesses suffered damage and were financially brought to their knees. Then covid arrived in 2019. Everything came to a standstill and, once again, businesses folded one after the other, people lost their jobs and children as young as 10 were diagnosed with depression. But life went on.
“Now it’s 2022, and people can finally breathe without a mask. Then monkey pox hit. Now the cherry on the cake, load shedding! Businesses can’t cope without generators. Those of us who can afford it, have to pay a fortune for fuel. And so South Africans are hit day by day!”
Burke’s business spends R138 every day to keep the generator running, an extra expense they have no other choice but to pay.
“You have no other choice because if you don’t have a generator you cannot operate,” she said. “Even with a generator we still can’t operate some of our bigger machines.
“As everyone knows, load shedding affects electrical equipment. Last year our main computer was affected and we nearly lost all the important information stored on it, but luckily the experts could retrieve the information saved on the hard drive. It’s really tough for businesses to survive with one dilemma after the other.”
Businesses in Hermanus say although load shedding has put a dimmer on business, the return of international tourists since travel requirements related to the Covid-19 pandemic have been relaxed, somewhat make up for it.
Overstrand Executive Mayor Dr Annelie Rabie added: “The increased fuel prices have tightened the budgets of local tourists and although we are seeing visitors on the streets, the expected correlating sale figures are not there this holiday. The relaxation of travel requirements definitely had a positive effect on the number of international visitors to our region. They are keen to explore and experience what the region has to offer. Every business is affected in its own way, and no business escapes the challenges of load shedding and increased fuel prices.
“Tourism is ever hopeful that Overstrand Whale Coast’s proximity to Cape Town still makes us front-of-mind when trips are taken.”