How they felt the pinch of power cuts

Boitshepo Majube | Friday March 21, 2014 15:37

 

Informal sector

Not only were the formal businesses affected, but informal businesses too were also hit hard.  Most informal businesses rely on the public lights to conduct their businesses. Without power there is no business for them.  It is even risky to sell anything in the dark.

Informal traders based at the bus rank, malls, in front of supermarkets and bars could not hold back their anger at the constant power outages that have inconvenienced them so.

“When the shops close due to power cuts we are also forced to go home because it becomes too risky to sell in the dark.  Without light people do not go out into the dark,” said Kegomoditswe Kgatswe, a vendor who sells food, airtime and cigarettes in Mogoditshane.

She, however, notes that during the day business is better, especially if there is no power as people are forced to buy ready cooked meals from her.  “I have bought firewood to prepare food in case there is no power,” she said.

While Kgatswe has a contingency plan to fend off the full impact of the blackouts, the same cannot be said for other informal traders.  Johannes Loeto, who sells fish, orders it from Maun and Kasane.  He told Mmegi that he was forced to throw away the rest of his stock as it was off.

“I use a deep freezer at home to store my fish.  Without electricity the deep freezer cannot work forcing me to give away fish and throw away what is not edible,” he said, adding that he lost P5,000 in the whole ordeal.  Loeto said he is afraid of bringing more stock because he does not have faith in power security.

Meanwhile, occupants of small cubicles at the bus rank said they were forced to be innovative to keep the fire burning.

“Most of us here use electricity for cooking, but we have since bought gas even though it is very expensive compared to electricity,” one of the traders said, adding that in order for them to fend off losses they would be forced to increase their prices.

 

Formal without back-up power

Long lists of companies, even internationally recognised brands were not spared from the recent power cuts.  Most internationally recognised eateries, which employ a lot of Batswana, were forced to close shop to wait out the blackouts.

Even if power did come back, they said they could not fully operate, as it was a risk on their part.  “It is best to close and not risk losing your stock and paying employees for doing nothing,” one shop owner said.

Butcheries, bars and general dealers are helpless during the outage.  No more fresh produce on the shelves, as retailers fear the unknown. 

“There is no communication from BPC regarding power cuts, so we don’t know when power will go and come back,” said the general dealer.  As for slaughtering cattle to be able to supply meat, they note that they are forced to slaughter enough for a day, because they don’t want to risk storing large quantities of meat.

On why they have not installed back-up generators, they point to the cost as a major hindrance. “They are expensive, we can’t afford them,” said the butcher.

They point out that competition is already tough, if the situation continues big boys are taking advantage and making inroads into their market.           

 

The big boys

In the face of power outages, companies have told Mmegi that the use of diesel to produce electricity is 300 percent more expensive than electricity.  Companies have stated that the use of generators to produce electricity is meant to be a temporary measure, not for extended hours as is the case now.

Bolux Group has informed this publication that under the current climate they are producing at a loss. Nkosi Mwaba, Bolux Corporate Affairs Manager said they are producing to feed Batswana, as they expect to have their products on the shelves.

“We are losing millions because of the power cuts, which force us to resort to use of generators to produce power in order to manufacture our products,” he said.

With 450 employees, Bolux has revealed that they have no intention of cutting their workforce because they need it.  “We intend to keep all our employees, even if it means we pay them at a loss of revenue for the company.” Mwaba said if the situation persists they would be forced to stop production because of the electricity. “Otherwise we would be operating at a loss,” he said. 

 

Sitting pretty

Choppies Enterprises Limited said that they are cushioned from the power cuts that have bedevilled the country.  The group states that in anticipation of the power shortage they spent a fortune on back-up generators.

“We spent P69 million on back-up generators to kick-in in times of power shortages,” Chief Executive Officer Ramachandran Ottapathu said, at the group’s financial results this week. Ottapathu said using generators for them is not that costly to the company.

“We spend very little on utilities, it does not really hurt our financials,” he said, further noting that even their operations are not distracted.

 

Statistics

Statistics Botswana could not provide information concerning cost on the economy brought upon by the power cuts.