Answer to Question #125580 in Microeconomics for Zanele

Question

What is the impact of load shedding in attracting investment in South Africa

Answer 1

The following are business risks assorciated with load shedding

Cover for 'faulty' security measures

When there is load shedding there is a good chance that your business' security measures may be affected, which may raise concerns around the safety of your premises and insurance cover.

Cover for your back-up generator

With load shedding set to continue for some time, many business owners are having back-up generators installed professionally.

Accidents happen

When there is load shedding, power surges may occur. Power surges happen when the electricity returns after an extended outage, sending an increased flow of current to a wall socket or an electrical box. This has the potential to damage your business equipment

business interruption

You may experience a drop in sales, reduced turnover and even additional expenses as a result of a power surge, which can lead to damaged stock or broken machinery. This is why Santam offers

All these risks make business difficult to run and this scares away Investors