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Businesses hit hard by extended electricity outage

THE Nelson Mandela Bay Business Chamber has sounded the alarm over a prolonged electricity outage affecting the Beachfront and Walmer areas, warning that the situation has escalated into a full-blown crisis threatening business sustainability and economic stability in the metro.

Chamber CEO Denise van Huyssteen said the estimated three-week repair timeline marks the third major outage in the metro this year, with the hardest hit areas bearing the brunt of what she describes as preventable infrastructure failures.

“These outages could have been avoided through proactive, routine maintenance of the electricity network,” she said.

Hospitality and tourism sectors under strain

Businesses, particularly in the hospitality and tourism sectors, are under severe strain, with many forced to rely on generators for extended periods. This has led to escalating fuel and maintenance costs, placing already pressured margins under further stress.

“Generators are not designed for continuous, long-term use. The financial burden is significant, but there are also operational and safety risks,” Van Huyssteen adds.

Poor infrastructure maintenance

The Chamber maintains that the outages, linked to the collapse of pylons, highlight the fragility of the metro’s electricity infrastructure and the urgent need for improved maintenance and contingency planning.

“It is unacceptable that businesses must endure a three-week outage with no swift resolution. The pace of repair does not match the scale of the impact,” she says.

Beyond immediate operational challenges, the crisis is now threatening jobs and business viability in a metro already facing an official unemployment rate of 27.1%.

The impact also extends to the broader economy, with concerns raised about the metro’s ability to attract and retain major international events such as the Ironman and the World Lifesaving Championships, both key drivers of tourism revenue.

Additionally, the metro’s airport – a designated national key point – has been affected, further raising concerns about infrastructure reliability.

“These challenges damage Nelson Mandela Bay’s reputation as an investment and tourism destination. Investors prioritise locations with dependable infrastructure,” Van Huyssteen notes.

The Chamber has also highlighted the social impact, particularly on vulnerable residents in care facilities, who face increased risk during prolonged outages.

Potential turnaround possible

Despite the challenges, the Chamber says it continues to work with stakeholders through a technical task team to support network stabilisation. To date, 23 substations have been adopted by businesses to help curb vandalism and infrastructure decline, alongside ongoing engagement with Eskom’s Active Partnering initiative.

“We remain committed to being part of the solution, but decisive leadership and urgent intervention are needed,” says Van Huyssteen.

She adds that Nelson Mandela Bay has the potential for a rapid turnaround if infrastructure challenges are addressed collaboratively.

“As a business community, we stand ready to work with all stakeholders to resolve these  critical electricity, water and sanitation issues and protect investment and jobs in the metro.”

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