How lack of Electricity affects Construction Projects in Africa

All building construction projects are reliant on a number of different inputs to be successful. Examples of these inputs would be raw materials, labour, transportation and electricity.

Unfortunately, the reliable supply of electricity cannot be guaranteed in many African countries due to lack of infrastructure, maintenance and untrustworthy contractors, which leads to load shedding.

What is load shedding?

The deliberate shutdown of electric power in a part or parts of a power-distribution system, generally to prevent the failure of the entire system when the demand strains the capacity of the system.”

How does this affect construction projects in Africa

  • Investor confidence is reduced as investors worry about the safety of their investments being undermined by instability and unreliability of power.
  • The overall economy is affected not only by reduced investor confidence but also the fact that most businesses, in general, cannot operate without power. Suppliers, sub-contractors, manufacturers and most other inputs to the building industry are crippled without power.
  • The increase in the cost of electricity can be as much as three times higher than it would be if the grid were reliable, therefore increasing the building costs.
  • A delay in building completion of projects, therefore putting pressure on contractors and delays in starting in their next project. Sometimes projects cannot be completed and would need to be postponed.
  • An extra cost for the supply and upkeep of generators, therefore leading to higher building costs and an increase in pollution.
  • Electrical equipment – Surges and voltage spikes cause damage each and every time, although most often the equipment carries on working. Eventually, the equipment will fail.
  • Have to use more manual labour, as they cannot use electronic equipment. This will not be as efficient and will take longer to complete the project, as well as being more expensive.

In closing, make yourself aware of load shedding schedules, and take power outages into account when pricing and planning for your project. Look at the history of load shedding in the country to determine the risk of any unplanned or unscheduled outages. Consult with the electricity provider to determine their short term and long term upgrade and maintenance plans for their power network.

 

Sources:

Dictionary
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About Pauline Rainbird

I have been working at L2B since March 2011 and my current position is Deputy Head of Department - Africa. When I am not working I am either riding my bicycle or spending time with my dogs.

How does Load shedding impact your Business?

How does Load shedding impact your Business?

69-Blog-Header-How-does-load-shedding-impact-your-business

 

Load shedding impact your Business?

 

Load shedding, a word we have come to know all too well in SA. So familiar in fact that we have a regular Power Alert Advert that runs daily from 5pm. Load shedding is even used in advertising from the Santam “One-of-a-kind” ad to the SPAR “Better Together” ad which try to highlight the ‘positives’ of Load shedding.

In many ways we have learned to live with the fact that Load shedding is a part of our daily lives even if we haven’t had any recently. You may be celebrating this relief but Load shedding is far from over. Eskom has said it is still monitoring the situation and will implement Load shedding if necessary. Our power grid is fragile and constantly at risk and this will only be alleviated once all pre-existing plants have undergone comprehensive maintenance and new plants have been completed. The future of our energy supply is uncertain and alternative energy although necessary is not an option for immediate relief.

It’s one thing living with Load shedding on a personal level when we can light candles, turn on the gas and order takeout but for a business Load shedding can have serious impacts especially for smaller businesses.

Ethel Nyembe, Head of Small Enterprise at Standard Bank, said: “While big companies have the infrastructure, client bases and capital to cope, many small businesses, which have the potential to be active players in the South African economy, do not have the financial muscle and resources to overcome these challenges.”

According to Arthur Goldstuck, MD of World Wide Worx, the impact of even short periods without power was greater on SMEs than it would be on larger companies that likely have generators and other fall-back options and due to this there has been a dramatic shift in what SMEs consider to be the biggest external threats to their businesses.

“With power failures cited by 71% of respondents, the issue rates at almost exactly double the importance of crime, which came in a distant second, at 36%. This category is obviously driven to a large extent by those concerns that are highest in the public mind – SMEs have in the past attributed their sleepless nights to crime, the high cost of fuel, or even interest rates. These results came even when power failures were featured in the survey during the first load shedding several years ago, but load shedding still came well below crime at the time,” he says.

Productivity is vital for any business and Load shedding hits productivity hard which impacts profit. Load shedding is estimated to cost our economy between 8 to 10 billion rand a month understandably as Eskom currently provides 95% of our power.

 

Here are the Top Impacts Load shedding has on Business:

Loss of Production

Stock spoiling

Damage to electronics & machinery

Theft and burglary

Lighting

Battery life

Loss of Profit

 

On the positive side there are ways to minimise the impact of Load shedding:

Keep up to date on the Load shedding schedules

Solar Power/Alternative energy solutions

Generators/Gas

Surge protection

Back up your data

Back-up batteries/UPS

 

The fact is, there is no way to avoid Load shedding but by thinking smart, creatively and calmly could give your business the power to minimise the impact of Load shedding.

 

How does Load shedding impact your Business? Do you have tips to share? Leave a comment and let us know.

 

 

 

 

 

 

 

 

 

 

Sources/Further Reading:

http://www.fin24.com/Economy/Poor-load-shedding-plans-affect-businesses-20150128

https://www.enca.com/money/load-shedding-biggest-threat-small-businesses-survey

http://www.rdm.co.za/business/2015/02/11/how-load-shedding-hurts-the-economy

http://www.poweralert.co.za/poweralert5/how-does-it-work.php

https://www.santam.co.za/blog/santam-news/our-latest-tv-ad-one-of-a-kind-insurance-for-a-one-of-a-kind-country

http://www.gadget.co.za/sme-survey-shedding/

http://paycorp.co.za/is-load-shedding-killing-your-business-2/

http://www.nolands.co.za/index.php/auditing-news-and-information/business-news/item/341-load-shedding-your-business

http://adslive.com/why-load-shedding-is-bad-for-business/

http://www.bdlive.co.za/business/2015/07/30/what-basic-things-can-you-do-to-limit-load-sheddings-effects-on-your-business

 

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About Sasha Anderson

Millennial Mom + wife living the hash-tag life. Remember: If You Fail - Fail Forward

General Safety in South Africa

Leads 2 Business : Safety

Crime in South Africa, like many other places in today’s world, can be a problem. Despite some negative perceptions about crime in South Africa, it’s generally safe & friendly, all you need to do is take sensible precautions & follow some general rules in order to stay safe.

 

Personal Safety Tips

  • Be aware of your surroundings
  • Avoid unfamiliar areas & walking alone
  • Avoid wearing/displaying valuables & large amounts of money
  • Take ATM Safety precautions
  • If you travel inform someone of your destination
  • Ensure that you know relevant emergency numbers
  • In a robbery situation, remain calm & do not resist
  • Take a self defense course
  • Don’t leave animals in the car
  • Trust your instincts at all times

 

Home Safety

  • Fencing & Gates
  • Alarm, CCTV & Intercom Systems
  • Dogs
  • Security Lighting
  • Ensure gates are locked at all times & keys/access devices are in a designated area

 

Vehicle Safety

  • Keep doors locked & windows closed
  • Do not leave valuables locked in the car
  • Park in well-lit places
  • If something seems suspicious, rather drive away
  • Vary the routes that you take & do not give strangers a lift
  • Ensure you have sufficient petrol
  • If you are in a road accident, drive to the nearest police station
  • Have your keys ready before approaching your vehicle
  • If you feel you are being followed, rather drive to the nearest police station

 

Safety Tips Unique to SA:

  • Look out for potholes
  • Beware of animals on the road & other native creepies and crawlies
  • Swimming in rivers can be dangerous due to hippos, crocodiles & bull sharks
  • Take Malaria precautions (repellents, nets)
  • Take Tick precautions (to prevent tick-bite fever)
  • Avoid drinking water from Rivers (Bilharzia & Cholera)
  • Sun protection (even on a cloudy day)
  • Beware of Remote Jamming
  • Beware of Taxi’s while driving/ walking
  • Keep updated on Load-shedding Schedules & take pro-active measures

 

Although it seems like you’ve just been handed a mountain of Safety Tips they are not there to prevent you from enjoying life. Keep them in mind & make them part of your daily routine & they will become effective habits before you know it.

Think of it like Dr George Cui, “Safety First, Then Healthy, then Happy, then Wealthy.”

 

P.S. Please add your Safety Tips in the comments section below.

 

Further Reading:

https://www.travelground.com/blog/10-ridiculous-commonly-asked-questions-south-africa/

 

 

 

 

About Sasha Anderson

Millennial Mom + wife living the hash-tag life. Remember: If You Fail - Fail Forward