The effects of electricity load-shedding on the performance of small and medium enterprises in Pretoria, South Africa: A case study of Marabastad Business Community
DOI:
https://doi.org/10.17159/2413-3051/2023/v34i1a16768Abstract
South Africa has been experiencing electricity load shedding for over sixteen years and this has affected the performance of small and medium enterprises (SMEs) across the country, with devastating effects recorded in the post-Covid-19 era. SMEs are key drivers of the economy and their performance has a great influence on it, as they contribute 36% of gross domestic product (GDP). This case study of the problem used the qualitative research method, with data collected through interviews. This study established that, in the area studied, there is a decline in the performance of the entrepreneurs and working hours have been drastically reduced due to load-shedding. Proposals are made of measures that the SME implementers and the government of South Africa can take in order to prevent the situation from further deteriorating.
Downloads
References
Adebola, O.I., Talabi, F.O. and Lamidi, I.K. (2012). Rebranding Nigeria: the role of advertising and public relations at correcting Nigeria image. Educational Research, 3(5): 424-428.
African Development Bank (2011). Infrastructure and growth in Zimbabwe: an action plan for sustained strong eco-nomic growth. Tunis.
Aidoo, K. (2015). Scientific Dumsor report: See which areas enjoy or suffer most. http://www.todaygh. com/scientific-dumsor-report-see-which-areas-enjoy-or-suffer-most/. Accessed 25 January 2018.
Ashley, A., Steenkamp, and Henriette, V. (2016). The influence of load shedding on the productivity of hotel staff in Cape Town, South Africa. In: Expert Journal of Business and Management 4 (2), 69 - 77.
Bayati, A., and Taghavi, A. (2007). The impacts of acquiring ISO 9000 certification on the performance of SMEs in Tehran. TQM Magazine, 19(2), 140-149.
Biekpe, N. (2005). Financing small businesses in sub-Saharan Africa: Review of some key credit lending models and impact of venture capital provision. Journal of African Business, 5(1), 29-44.
Bilgili, F and Ozturk, I. (2015). Biomass energy and economic growth nexus in G7 countries: Evidence from dynamic panel data. Renewable and Sustainable Energy Reviews, 49, 132–8.
Bwalya, B. U., Chisola, Mushili, M., Kunda-Wamuwi, B/ M., Kafwamba, F.C., Membele, G.D. and Imasiku, E.N.S. (2021). Load-shedding in Kitwe, Zambia: Effects and implications on household and local economies, Develop-ment Southern Africa, DOI: 10.1080/0376835X.2020.Issue No.1870934
City of Cape Town (2015). What is load shedding? [Online]. Available from: www.capetown.gov.za/en/electricity/pages/loadshedding-explained.aspx [Accessed on 20/09/2015].
Department of Trade and Industry (2007). South Africa’s Economic Transformation: A strategy for Broad-Based Black Economic Empowerment. Department of Trade and Industry. Pretoria ww.info.gov.za/otherdocs/2003/dtistat.pdf.
Dooley, D. (1990). Social Research Methods. London, Prentice Hall.
Ebohon, O. J, (1996). Energy, economic growth and causality in developing countries: A case study of Tanzania and Nigeria. Energy Policy, 24, 447–53.
Eskom, (2014). What is load shedding. [Online]. Available from: http://loadshedding.ESCOM.co.za/loadshedding/description [Accessed on 20/09/2015].
Eskom News, (2020). Anti-electricity theft campaign steadily making progress, [Online]. Available: http://www.eskom.co.za/news/Pages/Sep2B.aspx. [Accessed: 11- Mar-2020].
Farhangi, H. (2019). The path of the smart grid, IEEE power energy Mag., vol. 8, no. 1, 2019.
Fatoki, O. O. (2010). Graduate entrepreneurial intention in South Africa: Motivations and obstacles. International journal of business and management, 5(9), 87.
Fatoki, O. and Garwe, D. (2012). Obstacles to the growth of new SMEs in South Africa: a principal component analy-sis approach. [Online] Available: http://www.academicjournals.org/AJBM/PDF/pdf2010/May/Olawale%20and%20Gar we.pdf [Accessed: May 18, 2015].
FinMark Trust. (2006). FinScope Small Business Survey Report [online]. Available: http://www.finmarktrust.org.za [Accessed: 15 November, 2009].
Foster, V. and Pushak, N. (2011). Nigeria’s infrastructure : a continental perspective. Africa Infrastructure country di-agnostic, Country Report, Washington, DC: World Bank
Gehringer, C., Rode, H., and Schomaker, M. (2018). The Effect of Electrical Load Shedding on Pediatric Hospital Ad-missions in South Africa. Epidemiology. 2018 Nov;29(6):841-847. doi: 10.1097/EDE.0000000000000905. PMID: 30063542; PMCID: PMC6167164.
Goldberg, A. (2015). The economic impact of load shedding: The case of South African retailers Gordon Institute of Business Science, University of Pretoria.
Hiatt, J. F. (1986). Spirituality, medicine, and healing. Southern Medical Journal, 79, 736–743.
Denzin, N. K., and Lincoln, Y. S. (2005). Introduction. In N. K. Denzin and Y. S. Lincoln (Eds.), The SAGE handbook of qualitative research (3rd ed., pp. 1–29). Thousand Oaks, CA: Sage.
Depuru, L., Wang, T., and Devabhaktuni, V. (2017). Electricity theft: Overview, issues, prevention and a smart meter-based approach to control theft, Energy Policy, vol. 39, no. 2, pp. 1007–1015, 2017.
Eskom. (2013). Power Stations and Pumped Storage Schemes [Online]. Available from: http://www.eskom.co.za/Whatweredoing/ElectricityGeneration/PowerStations/Pages/Power_Stations _And_Pumped_Storage_Schemes.aspx [Accessed on 15/05/2016]
Gujba, H., Thorne, S., Mulugetta, Y., Rai, K., and Sokona, Y. (2012). Financing low carbon energy access in Africa. Energy Policy, 47, 71-78.
Jiang, R., Lu, Y., Wang, J., Luo, C., and Shen, P. (2018) Energy theft detection issues for advanced metering infra-structure in smart grid, Tsinghua Sci. Technol., vol. 19, no. 2, pp. 105–120, 2018
Juggernath, S., Rampersad, R., and Reddy, K. (2013). Corporate responsibility for socioeconomic transformation: A focus on broad-based black economic empowerment and its implementation in South Africa. African Journal of Business Management, 5(20), 8224-8234.
Lee, N. (2008). Doing Business Research. A guide to Theory and Practice. SAGE Publishing, Inc. Los Angeles.
Maqsood, A., Zhang, Y., and Corzine, K. (2018). Optimal rotational load shedding via bilinear integer programming. In 2018 Asia-Pacific Signal and Information Processing Association Annual Summit and Conference (APSIPA ASC) (pp. 742-747). IEEE.
Mashego, G. (2013). Investors lose confidence in SA markets. Sunday Times: 5, 1 Jul 2013.
Mason, M. (2010). Sample size and saturation in PhD studies using qualitative interviews. In Forum qualitative Sozi-alforschung/Forum: qualitative social research, 11(3).1-19.
Ministry of Energy. (2019). National Energy Policy. Ministry of Energy, Lusaka.
Mulongoti, D, Mugala, G, Kumwenda, B and Louie, H, (2016). Determining the effects of load-shedding on residen-tial electricity consumption using meter data – a case study of Kitwe, Zambia. 2016 IEEE Global Humanitarian Technology Conference (GHTC), IEEE, 488–494.
Munyanyiwa T (2009). SMEs Key to Economic Growth, Recovery.
Musademba, D, Kanyepe, M, Madiye, L and Hove, T, (2012). Effect of load shedding in Chinhoyi urban residential areas, Zimbabwe. International Journal of Energy Engineering 2, 232–41.
National Economic Consultative Forum. (2015). Zimbabwe national competitiveness report 2015. Harare.
Ndabeni, L. L. (2018). National systems of innovation and small enterprise development in South Africa. In The promise of small and medium enterprises (pp. 203-240). Routledge India.
Ntsika Enterprise Promotion Agency (2002). State and Small Business Development in South Africa Annual Rev. [On-line] Available: http://www.ntsika.org.za [Accessed: 23 November 2009].
NVMyPower. (2015). What is load shedding [Online]. Available from: http://nvmypower.co.za/load-shedding [Ac-cessed 20/09/2015].
Odimegwu, C. O., and Kekovole, J. (2014). Social Demography of South Africa: Advances and Emerging Issues (Il-lustrated ed.). Johannesburg: Taylor and Francis 2015.
Okpara, J. O., and Kabongo, J. D. (2009). An empirical evaluation of barriers hindering the growth of small and me-dium sized enterprises (SMEs) in a developing economy. African Journal of Business and Economic Research, 4(1), 7-21.
Peterson, E.W.F. (2017). The role of population in economic growth. SAGE Open 7, 2158244017736094.
Pretorius, I., Piketh, S., Burger, R., and Noemangus, H. (2015). A perspective on South African coal fired power sta-tion emission. Journal of Energy in Southern Africa, 24(3), pp. 27-40.
Pule, A. (2014). Vuk'uzenzele. hike [Online]. Available from: Illegal electricity connections endangers lives:
http://vukuzenzele.go.za/illegal-electricity-connections-endangers-lives [Accessed on 13/05/2016].
Rensburg, J. (2010). Research in the social sciences. University of South Africa Muckleneuk, Pretoria.
Rogerson, C.M. (2011). Growing the SMME manufacturing economy of South Africa: Evidence form the Guateng province. Journal of contemporary African studies. 19(2) pp267-289.
Sharmilee, S and Muhammad, H. (2016). Factors affecting the performance of small and medium enterprises in Kwa-Zulu-Natal, South Africa Problems and Perspectives in Management, Volume 14, Issue 2, 2016.
Sitharam, S., and Hoque, M. (2016). Factors affecting the performance of small and medium enterprises in KwaZulu-Natal, South Africa. Problems and perspectives in Management, 14(2), 277-288.
South Africa. (2006). Electricity Regulations Act for Republic of South Africa. No. 4 of 2006. Government Gazette, 493 (28992), pp. 1-9.
Statistics South Africa. (2023). Quarterly Labour Force Survey: Second Quarter, April to June 2009. [On-line] Availa-ble: ttp://www.info.gov.za/speeches/2009/09072911151001.htm [Accessed 3 December 2023]
Tabary, ME and Purdie, E. (2016). Sustainable development and the demand for energy. World Bank Blogs. https://blogs.worldbank.org/opendata/sustainable-development-and-demand-energy. The World Bank
Tembo, T.S., Mulenga, P.B. and Sitko, N. (2015). Cooking fuel choice in urban Zambia: Implications on forest cover. Working Paper, No 94. Lusaka, Zambia. Indaba Agricultural Policy Research Institute (IAPRI).
The Capital Hotel School and Training Academy. (2015). 6 Real Problems Hotels Face During Load-shedding or Extended Blackouts [Online]. Available from: http://www.capitalhotelschool.co.za/blackouts/ [Accessed on 28/02/2015].
Umar, B.B. and Kunda-Wamuwi, C.F, (2019). Socio-Economic effects of load shedding on poor urban households and small business enterprises in Lusaka, Zambia. Energy and Environment Research 9, 20–9.
Von Ulmenstein, C. (2014). Loadshedding impact on Tourism, says SA Tourism! [Online]. Available from: http://www.whalecottage.com/blog/cape-town/loadshedding-impacts-on-tourism-says-sa-tourism/ [Accessed on 13/05/2016]
World Bank. (2016). World Bank Data. Available online at: http://data.worldbank.org/ (accessed on 10 March 2016).
World Bank. (2016). World development indicators: Featuring the sustainable development goals. Washington DC.
World Bank. (2017). Doing business 2013. New York: The World Bank.
Zimbabwe Agenda for Sustainable Socio-Economic Transformation. (2013). Zimbabwe agenda for sustainable socio-economic transformation: Towards an empowered society and a growing economy (October 2013 – December 2018). Zimbabwe
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Tambudzayi Godfrey Musabayana
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.