Sefa conducted a study on the impact of loadshedding on its funded clients and the outcome of the survey shows that SMMEs are indeed adversely impacted by loadshedding.
The findings revealed that businesses suffered loss of revenue and production, have no alternative power, resorted to utilising the loadshedding schedule to plan for production, seek assistance to acquire alternative energy sources and assistance with restructuring of their loans in respect of their loan repayment obligation.
The DSBD together with its agencies, the Small Enterprise Development Agency (Seda) and the sefa is considering the introduction of interventions to address the situation. The DSBD are looking at a multi-pronged approach for supporting SMMEs affected by loadshedding:
1. The Power Purchase Product (PPP) is an immediate relief for formal and informal enterprises (alternative power sources). It is an initiative of the Small Business Development Portfolio (DSBD, Seda and sefa) to support SMMEs with alternative energy generating equipment (generators and Photovoltaic installations - PV). The programme will be implemented via the existing programme structures as follows:
The power purchase IMEDP will be a 100% grant programme, whilst the TREP power purchase will be a blended term loan facility of 50% of the installed price (50% grant and 50% term loan). The programme will utilise the services and capacity of existing suppliers of equipment and accredited installers.
2. Guarantee programme via the Bounce Back Scheme administered by Khula Credit Guarantee (KCG) on behalf of government. This is a medium to long term intervention that still require intense discussion relevant parties including the National treasury who are the custodian of the scheme.
• Ongoing discussions with National Treasury indicate their interest and consideration of opening up the bounce back scheme to all Development Finance Institutions.
STELLA NDABENI-ABRAHAMS
MINISTER: DEPARTMENT OF SMALL BUSINESS DEVELOPMENT