The Minister explained that Medupi \u201cstands between people\u2019s livelihoods and prosperity\u201d and emphasised the impact of breakdowns and subsequent load-shedding on the South African economy.<\/p>\n\n\n\n
Ramokgopa said 640,000 people lost their jobs due to elevated load-shedding in 2022<\/strong>, and the amount of jobs that have been lost as a result of load shedding in 2023 is projected to be upwards of 800,000.<\/p>\n\n\n\n \u201cAt the current rate that we are going, where we have had the most days of load-shedding in 2023, we will most likely lose 840,000<\/strong> jobs if you were to go by the modelling that has been done by some of the reputable institutions,\u201d he said. <\/p>\n\n\n\n This means 1.48 million jobs have likely been extinguished by rampant power cuts in South Africa over the past 24 months. <\/strong><\/p>\n\n\n\n Additionally, during load shedding, 64% of small township businesses cease operations and almost 66% of business owners have cut jobs, according to the Nedbank Insights Report conducted in partnership with the Township Entrepreneurs Alliance (TEA).<\/p>\n\n\n\n According to The Outlier, South Africa has already faced 6,776 hours of load-shedding in 2023, and 326 days of load-shedding have been recorded so far. This implies that, as of 6th December, there have been only 12 days without load-shedding this year, which is a matter of grave concern.<\/p>\n\n\n\n The Minister has previously<\/a> warned about job losses when he estimated the impact of power cuts on gross value added to the economy would be approximately R725 billion. <\/p>\n\n\n\n The Minister also emphasised that Eskom’s inability to meet electricity demand reliably is not only a significant problem for the economy but also detrimental to the government’s ability to help the poor.<\/p>\n\n\n\n The impact of load-shedding on job losses has already been witnessed in South Africa’s mining industry this year. In this year’s trading updates, mining companies and their CEOs have been vocal about the worsening operational conditions that have hindered their investment in South Africa.<\/p>\n\n\n\n Daily Investor reported<\/a> that Exxaro\u2019s coal production decreased by 11% in 2022 \u201cdue to the poor rail performance from Transnet\u201d and the \u201cstructural constraint of inadequate electricity supply\u201d. Sasol attributed its declining output to South Africa\u2019s deteriorating infrastructure and the \u201cstructural constraint\u201d of load-shedding.<\/p>\n\n\n\n \u201cPersistent load-shedding, infrastructure constraints, in particular, the poor performance of the national provider of rail and port logistics services continue to significantly impact our business,\u201d it said.<\/p>\n\n\n\n Sibanye-Stillwater said the \u201cincreasingly supportive environment in Europe is in stark contrast to the operating environment in South Africa, which has continued to regress\u201d.<\/p>\n\n\n\n In an operating update earlier this year, Sibanye said South Africa\u2019s operating environment for miners is regressing due to ongoing load-shedding, the deteriorating quality of public services, and increased organised crime.<\/p>\n\n\n\n These challenges have led many local miners to reduce costs by cutting jobs, specifically in their South African operations. Sibanye recently announced restructuring efforts that could impact over 4,000 South African jobs.<\/p>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/mining-1024x576.jpg\")
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