In an open letter to Cyril Ramaphosa, the President of the Republic of South Africa, the Consumer Goods Council of South Africa urged for a “sustainable plan to solve the electricity crisis”.  Due to mismanagement, lack of planning, gross corruption and inefficiency, power generation in South Africa is far below demand.  This has resulted in rolling blackouts referred to as “load shedding”.

In order to cope with an erratic supply of power, retailers have installed diesel generators, solar panels and refrigerated trailer trucks.  A major retailer characterized the current situation as “a permanent new reality”.

The cost of generating power outside of the grid is crippling retailers. Costs of generation are reflected in lower profit margins and consequently depressed share prices.  The Council noted that with a prolonged energy crisis, food producers, drug and grocery stores will be unable to supply demand for essential goods.