South Africa’s (SA) Economist Doctor Frederich Kirsten has warned that rising electricity prices could impact job security, particularly among small businesses.
The National Energy Regulator of SA (NERSA) has approved an 8.76% tariff increase for Eskom’s direct customers, effective from April 1. Municipal customers are expected to face a higher increase of 9% from July.
Kirsten says while larger businesses may find ways to absorb or offset the rising costs, smaller enterprises are likely to struggle.
Kirsten says, “The small businesses are seen as the lifeline of the South African economy in terms of creating new jobs. They are the innovators and entrepreneurs who start businesses and employ people in their communities.
When they fail, five to ten to twenty jobs can be lost. It is important to recognise that SA’s middle class is already vulnerable, and if Small, Medium, and Micro Enterprises shut down, many jobs will be lost with them.”
–SABC/ChannelAfrica–
