NYDA: Load shedding hinders starting and scaling an enterprise
Young entrepreneurs cannot reasonably be expected to start and scale an enterprise under the conditions caused by the perpetually high stages of load shedding, according to National Youth Development Agency (NYDA) CEO Waseem Carrim.
“It is already a challenge to start a business – we are making it so much harder with the energy constraints,” he said in an interview with Business Report.
The country’s youth development-focused initiative said in all its forms, load shedding was devastating to the social circumstances and the economy of South Africa.
For young people, it hampered their ability to study effectively and crippled an economy that was already failing to create sufficient jobs for young people.
“Companies are unable to hire workers due to shorter working hours. Businesses who are affected by load shedding are laying off workers thus deepening unemployment,” he said.
Carrim said load shedding created a negative sentiment around South Africa’s economy, deterring investment, hampering productivity, and deepening inequality.
“In the manufacturing, automotive, mining, retail sectors which are energy dependent it is going to reduce production. Companies are already spending a fortune on diesel, which is driving up the cost of goods and services,” Carrim said.
Many of NYDA’s regional offices had been affected by load shedding.
“Although employees continue working, delivering services to young people is challenging with no power supply,” he added
Carrim said where possible, youth-owned enterprises should access the solar tax incentive that had been rolled out or invest in backup power supply.
-BUSINESS REPORT
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