The Effects of Load Shedding on the South African Economy

Apart from the actual black outs, how is load shedding actually affecting the countryโ€™s economy? Not only does it have an impact on food security and mobile networks but business sectors and industries at large.

Earlier this month, Stats SA reported that the countryโ€™s gross domestic product decreased by 0.7% in the second quarter of 2022 โ€“ much of this decline was due to to rolling blackouts which halted economic output.

Aside from the damage done to the economy in general, specific sectors are now sounding alarms over the harm caused by Eskomโ€™s load shedding. Small businesses in the country are being heavily impacted by load shedding โ€“ more so than their larger counterparts. Small businesses are usually on the municipal grid, not Eskomโ€™s grid, so they canโ€™t even negotiate special deals like big business can. Thereโ€™s the cost of downtime, the cost of business disruption โ€“ up to three times daily, and many businesses are at high risk with their equipment, so maintenance costs also escalate. Following the Covid-19 pandemic there has been a pick-up in small business activity in the country, with the hope of resurgence โ€“ but the current electricity crisis does not help, as SMEs lack the necessary support structures to take the hit.

Large-scale network providers are also being hit in all directions by severe load shedding and related battery theft, threatening their reliability and elevating costs. A science and technology engineering specialist, said that mobile towers need roughly 12 hours to recharge their batteries, but load shedding is making it more difficult for them to keep up connectivity.

Farms across the country have been forced to adapt to a โ€˜new normalโ€™, with workers sometimes having to irrigate farms at night, rescheduling time slots for operations and trying to maintain cold storage systems that are crucial for preserving the freshness of foods.

Some of these โ€˜silentโ€™ costs to the economy include:

  • Tens of thousands of jobs are lost as a direct result of load shedding.
  • Hundreds of thousands of jobs could have been created had load shedding not happened.
  • South Africaโ€™s reputation globally.
  • A loss of confidence by the citizens in the government.
  • The loss of skills and expertise due to emigration.

In conclusion a turnaround is needed badly, and there should be absolutely no talk โ€“ only action!

Tips in Surviving Load Shedding

  1. Know the Load Shedding Schedule

Keeping an eye on Eskom’s schedule and following them on social media is the best way to stay informed about any unexpected announcements. Make a copy of the schedule and put it on the fridge so everyone in the household is up-to-date.

  • Unplug Appliances

Unplug or turn off all appliances when load shedding begins to prevent electric surges when the power returns. In case you’re not at home when the power goes out, it’s actually a good idea to keep appliances unplugged. The unplugging of appliances that aren’t in use will also relieve the grid of any power strain; if more people do this, power cuts could be reduced.

  • Stay Charged

Load shedding can be unsettling at times, but if you’re prepared most of the time, life will seem less disrupted. Keeping your computer, iPad, and phone charged, and filling a thermos flask with boiling water are the simplest and most essential things to do. You may also want to consider getting a UPS or mobile WIFI modem. A power bank is a great investment to make as well, as you can charge your mobile phone even when there is load shedding.

  • Lighten Up

Keep candles and matches, an oil lamp, torch, or battery-operated touch lights in accessible spots around your home to prepare for those evening power outages. Remember to buy spare batteries and keep the rechargeable batteries charged. You can also use solar lamps like Consol’s Solar Jars during scheduled power outages, just make sure to bring them indoors before the scheduled power outage – no one wants to search for lamps in the dark at night. When budgets allow, consider investing in a solar kit that will help you generate, store, and use power regardless of when load shedding starts. Finally, if all else fails, take the opportunity to remember how romantic a candlelit dinner can be.

  • Go for Gas

If you don’t already have a gas stove installed in your kitchen, then buying a portable one- or two-plate gas stove is an inexpensive solution. The cost of a gas heater ranges from R1000 to R2000 in most retail stores.

  • Make Sure Youโ€™ve Got Backup

The obvious solution is to use a generator or inverter in order to keep essential electronics running. If you canโ€™t afford to go that route, then simply look at getting a few backup batteries for things like alarm systems, garage doors and electric gates. It might also be a good idea to ask your alarm system provider for mobile panic buttons โ€“ test them fairly regularly to make sure they are working.

  • Camp Indoors

Turn the struggle of load shedding into a fun indoor camping adventure. Put up a tent or create a fort in your lounge or living room. Make sure everyone fits, even the pets, for a cosy night of storytelling, games and bonding.

  • Embrace Hygge

If you havenโ€™t already heard about this Danish concept, itโ€™s essentially all about comfort and cosiness and creating warm atmospheres with people that mean the most to you. Itโ€™s a sensory experience that encourages letting natural light into the home and reconnecting with nature. Remember all those books you wish you had time to read? All those times you promised to invite friends around for a board game night? Think of load shedding as a gift of time, forcing you to slow down, connect with loved ones or switch off from the world, and possibly even just do nothing for a couple of hours.

Sources: Businesstech and Rawson

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