Paltry projected growth rate worries business

Power outages cast doubt on export quality RAY SMUTS HORROR, of horrors. No only have all business sectors in the Western Cape suffered grievously from too many power outages, costing the province hundreds of millions of rand in lost revenue, but the projected growth rate is dubious, to say the least. Another shocker, considering Cape Town offers South Africa’s largest single tourist attractions in the Victoria and Alfred Waterfront and many other financially viable enterprises, is that the Cape Metropole features right at the bottom of a six-Metropole poll, indicating a scant economic growth projection of 1.8% for the year. Hard to understand, given that the Western Cape was, not too long ago, reckoned to be performing better on the economic front than any other province in the land. Albert Schuitmaker, CEO of the Cape Regional Chamber of Commerce, is a concerned man, as are many others. He believes the problem is possibly attributable to insufficient focus on economic development by the various stakeholders; also, perhaps, a touch of lethargy ‘that we are doing all right’. The target growth of the Western Cape is 6%, but he is doubtful the Western Cape will achieve more than 3% economic growth, 50% below the original forecast. Turning to power outages in the Western Cape – a regular occurrence in Gauteng and other provinces for many months but relatively new to this province – Schuitmaker is concerned about the effect it will have on export fruit in particular. (Wine quality suffers too from inconsistent temperatures). “If these cuts continue, which we believe will be a fact of life for some time, we will certainly have a problem with exports. Already certain shipments did not go out on time, resulting in poorer quality. “However, the judgment is on the other side of the ocean where the customers will either accept the quality as it is it (resulting from non-constant temperatures), or look to other global suppliers in light of our power problems. “What everyone wants to know is how we are going to rectify the situation, how quickly we can do it and how sustainable it will be.” Schuitmaker, however, remains optimistic that problems besetting many parts of the country will eventually be rectified once Koeberg is back on full stream, Eskom has got its act together, and new power stations and refurbished plants have come on line. Government and Eskom have committed R95 billion toward electricity capacity development for the entire country over the next five years.