Power cuts are hurting small businesses in South Africa – but sharing resources and equipment might be a solution

OFENTSE OLUNLOYO and TANKISO MOLOI

Worldwide, small and medium enterprises (SMEs) are seen as the backbone of a thriving economy. They make up a substantial portion of the total number of companies and are estimated to contribute over 87% of all jobs globally.

A recent World Economic Forum report showed that major disruptions affect the value chain of SMEs significantly more than they affect larger enterprises. Disruptions, such as COVID-19 and geo-political tensions, often lead to failure among these businesses.

In South Africa, an example of a significant risk to SMEs is the acute shortage of power. Power outages mean that they can’t operate. No production or trade is possible, and inventory is damaged. The enterprises can’t plan and execute their operations effectively, or meet the demands of their customers. They can lose revenue and customers.

South Africa’s acute power shortages are likely to go on for some time. But we believe that the concept of the sharing economy holds promise