Is Load Shedding is a threat to the country’s economy?

Professor Raymond Parsons from the North West University Business School said renewed load shedding is bad news for the economy.

“At the very time when the country wants to boost investor confidence, a fresh element of uncertainty has been injected into business decision-making. Prolonged load shedding will not only negatively impact on investor sentiment, but is also particularly damaging to vulnerable small businesses.”

“It could also lead to job losses at a time when there is widespread concern about present levels of unemployment and low levels of economic growth.” Parsons said in the short term the private sector and consumers can make contingency plans to offset the worst effects of load shedding.”

Cape Chamber president Janine Myburgh said what business needs is certainty of supply and if Eskom cannot provide that, businesses will start to make their own arrangements.

“This means they will turn to rooftop solar and that will undermine Eskom’s future customer base.”

“Load shedding also means that Eskom will sell less electricity and that will mean less revenue to pay the interest on its huge debts. The main problem for business is that load shedding introduces new uncertainties. We don’t know how long load shedding will last. It is becoming clearer every day that Eskom is in bad shape and it is increasingly difficult to have confidence in the organisation, which is surely headed for major structural changes, if not downsizing.”


Source : As per the article on IOL –