
66% of township businesses have cut jobs due to load shedding.
Load shedding has ravaged many businesses across South Africa, especially in the townships.
Beyond multiple business struggling to keep up with increased rolling blackouts, the economy has been crippled, which has pushed the country into a likely recession, halted business operations and shattered foreign investor interest.
New data by Nedbank, conducted in partnership with the Township Entrepreneurs Alliance, found that of the 200 small township businesses surveyed, 66% shed jobs because of the financial effects of load-shedding and 5% of businesses had to close their doors.
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Kaya Biz with Gugulethu Mfuphi spoke to Bulelani Balabala – Founder of Township Entrepreneurs Alliance (TEA) about how business in the township are struggling in the midst of rolling blackouts.
LISTEN TO THE FULL CONVERSATION HERE:
Bulelani Balabala painted a picture of issues many small businesses are facing in township.
“Through our observations in the past year, especially though engaging with entrepreneurs it has been a very tough time. Interest rates hike means that it is becoming more difficult to borrow, and for small businesses, more is required of you.”
“Socio-economic impact has had a ripple effect for many. There’s also a rise in crime, there are businesses in the townships that are sitting ducks, that don’t have the pleasure of security…”
“The cost of operating has also gone up, the cost of diesel along with other increasing operating cost that bar you from taking your business to the next level.” says Balabala



