South Africa has been suffering an increasing deficit in power generation capacity since 2007, resulting in electricity rationing that has resulted in businesses and households running without power for up to 12 hours a day at Stage 6 load shedding.
On Thursday, grocery retailer Pick n Pay also added to the business concerns, with its chair Gareth Ackermanwhat he called the government's inaction in solving the structural problems caused by inadequate investments in infrastructure for public services such as electricity production. The electricity shortages cost Pick n Pay about a half a billion rand in its recent financial year, while it cost SA's biggest grocer Shoprite more than R560 million in diesel costs in its first half alone. Load shedding costs Tiger Brands about R1.5 million a day at Stage 6 load shedding, the company said earlier this year.
Unlike Pick n Pay's stinging criticism of the government's poor handling of the electricity capacity constraints, AB InBev adopted a polite and public relations stance. "We are encouraged by and are supportive of the work government is doing to address the energy and resource challenges and we will support initiatives that help maintain the continuity of operations, prevent losses, and support economic growth," said Rivett-Carnac.In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features.
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