Big business organizations in South Africa have expressed fears over the prevalent blackouts which have been blanketing the country over the past days. They said companies may shut down and a widespread job loss crisis may take place if the blackouts don't stop.
According to Eye Witness News, South Africa has been suffering from stage four load shedding for seven days now. Eskom has acknowledged that the blackouts will possibly persist for the next few months. The announcement triggered fear among business owners and business organizations.
"If you default on your loan, it effectively means you no longer have sufficient revenue to pay for many of your other costs and the likelihood is that you are going to have to dismiss staff because if you don't do that you are going to lose your business," South African Chamber of Commerce (SACCI) CEO, Alan Mukoki, said.
Many businesses in the country said they have been losing significant amounts of daily income due to the blackouts and cannot do service for their loans. SACCI and Business Unity said the extreme load shedding has started threatening jobs and could also have a huge impact on the economy as a whole.
On Tuesday, Eskom announced that stages 5 to 8 on load shedding are being considered as a "contingency measure" should the electricity firm feel that there is a looming risk of a national blackout.
While businesses are struggling to keep up with the blackouts, communities have taken to social media to make light of the situation. Some social media users created memes to break the ice while others shared tips on how to deal with the electricity crisis.
On the other hand, the impact of South Africa's widespread blackouts on the economy is real for many entrepreneurs. As of Wednesday, Eskom released a statement confirming that the country has already entered Stage 4 of load shedding.
According to The South African, Eskom is expected to shed 4,000MW from the power grid as the country undergoes the fifth consecutive day of blackouts. The move is said to be part of the electricity provider's plan to prevent a catastrophic blackout that will further hurt the corporate sector.
Analysts have estimated approximately R20 billion in unserved energy losses once the load shedding reaches its tenth day. Some critics have called on Eskom for its alleged dishonesty and incompetence, especially as the elections near.
Eskom said Wednesday's power cuts that kicked off at 9:00 a.m. was due to "a shortage of capacity" but critics said the electricity provider has not been providing factual statements and reasoning. The firm has yet to respond to the accusations.
Wednesday's blackout will end at 11:00 p.m. (South Africa Standard Time) GMT+2.
