The Impact of Load Shedding on the South African Economy

Eskom supplies 90% of South Africa’s power, or they are supposed to supply electricity but with the large amounts of load shedding happing they aren’t supplying anything but darkness.

Eskom is proving to be the biggest threat to the economic stability of South Africa due to the large amounts of losses that occur due to load shedding. The word Eskom is very much associated with negative emotions from the public due to the constant Load Shedding that has been happening for many years, but only seems to get worse not better.

Load Shedding not only effects the everyday lives of humans, but it is also a huge risk to people who rely on electricity to do simple things such as breathing. Load shedding affects everyone. The rolling blackouts have had an impact on entrepreneurs, small businesses and many industries. The stability of South Africa’s electricity supply is concerning investors, disrupting production, and negatively affecting the national economy. The interruptions caused by load shedding will have a negative impact on the cost small businesses in numerous sectors have to carry. Load shedding is very expensive, not only to Eskom, but also for the country. Many companies that depend on electricity, have to reduce operating hours or even close due to load shedding, this causes a loss in income and could lead to unemployment rates increasing. Even the value of South African rand has been affected, due to no one wanting to invest in an unstable economy. With load shedding happening more and more many companies need to look at alternative power sources which will result in larger expenses, the alternative power source is unfortunately temporary and will not last for long periods of time and it tends to cost a lot more money.