The Franchise Association of South Africa (FASA) has warned that the country’s businesses should prepare themselves for the return of load-shedding.<\/p>\n
The group said it has learnt of a risk of power outages returning in late\u00a0August or September,\u00a0which will once again have a devastating effect on small businesses.<\/p>\n
“Just two days ago one of the most well known business-to-business brands in South Africa stated that the brand lost no less than R8 million in sales pertaining to just one sector of their business due to load shedding in March this year,” said Vera Valasis, executive director of FASA.<\/p>\n
She added that renewed load-shedding could be the proverbial \u2018straw that breaks the camel\u2019s back\u2019.<\/p>\n
“Further loss of economic activity due to renewed load shedding is unaffordable and may push many small franchises to the brink of bankruptcy,” she said.<\/p>\n
“The increase in labour costs, electricity, supply of goods, rentals, petrol and many other costs have more than doubled in the last ten years. However, sales growth simply fell far short of having doubled over the same period which puts incredible pressure on profitability.”<\/p>\n
Dark times<\/strong><\/p>\n