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Load-shedding free days a lifeline for small businesses

by Moipone Malefane
January 23, 2025
in Business
Reading Time: 3 mins read
A A
No loadshedding help small businesses grow

No loadshedding help small businesses grow

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By Azwidohwi Mamphiswana

Bonga Mkhize, owner of The IT Café in Soshanguve, is among scores of small businesses breathing a collective sigh of relief after power utility Eskom achieved 300 consecutive days without load-shedding. This milestone has given entrepreneurs a stable foundation to rebuild their businesses and plan for the future after years of navigating the chaos of rolling blackouts.

Mkhize said the stable energy supply has been transformative. The café, a hub for workers, students, and the community at large, endured immense challenges during the era of rolling blackouts. “Before this, customers would come and go because we couldn’t provide reliable services,” Mkhize explained. “Load-shedding forced us to invest in a generator and solar panels, and eventually, customers from all over Soshanguve came to us for services. But the costs were high. Diesel was expensive, and when electricity came back, sparks would damage our appliances, leading to costly repairs.”

Oplus_131072

Now, with 300 days of uninterrupted power, Mkhize is optimistic about the future. “If power supply remains stable, profits will normalise, and who knows, maybe we’ll even exceed our previous levels,” he told Vutivi News. “When you don’t have to worry about blackouts, you can focus on growth. This isn’t just about surviving anymore; it’s about dreaming big and creating opportunities.”

In Limpopo, Gracious Madavha who owns Gracious Beauty Bar, faced similar struggles. Her salon, dependent on electricity for hair dryers, nail tools, and UV lamps, found itself paralysed during load-shedding. “Clients stopped coming because they didn’t want to wait through long delays,” Madavha said. “Hair relaxing, drying, and treatments were impossible. We even had to reduce our hours, closing at 4 pm instead of 6 pm because it was too dark to work. On top of that, we had to invest in a generator and rechargeable lights – unexpected costs that hurt us deeply.”

During load-shedding, her profits dropped by 40%, but the past 300 days have brought hope. “We’ve regained 20% of our revenue since the power stabilised,” Madavha said. “If this continues, more people will be employed, and starting a business won’t seem so daunting.” Eskom’s Generation Recovery Plan, launched in March 2023, has been credited for this historic achievement.

The utility’s group executive for generation, Bheki Nxumalo, highlighted the operational improvements that made the milestone possible. “These 300 days without load-shedding represent a significant reduction in unplanned outages, a 7% improvement in the energy availability factor, and diesel savings of R16.42 billion,” Nxumalo said. “We’re now looking ahead, with our goal of delivering a full year without load shedding by March 26, 2025.”

Eskom CEO Dan Marokane added that the stability has boosted business confidence. “Companies that previously relied on self-generation are now reconsidering their dependence on Eskom. The savings we’ve made have been reinvested into driving efficiencies and ensuring long-term sustainability,” Marokane said.

Tags: SMME and dieselSMME and EskomThe IT Café
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