The Consumer Goods Council of SA (CGCSA) says a skilled, hands-on person needs to be appointed to solve the power crisis at director-general level in the government, rather than a new government minister.
The CGCSA, which represents the country's retailers and food producers, on Friday said it was “inconceivable in these tough economic times and in the context of a bloated public wage bill the president is considering appointing an electricity minister”.
In his state of nation address (Sona) on Thursday night, President Cyril Ramaphosa announced a state of disaster, which allows the government to make regulations in days, without meaningful time for public comment.
The CGCSA which represents some of SA's biggest firms such as Pick n Pay, Famous Brands and Tiger Brands, said it was concerning that the energy crisis had become so dire that a declaration of a state of disaster was necessary.
The president said the state of disaster would enable the government to provide practical measures to support businesses in the food production, storage and retail sectors.
He also said the disaster would enable government to accelerate energy projects and limit regulatory requirements in such projects.
Under the auspices of the CGCSA, some of the country’s top CEOs from British American Tobacco (BAT), Massmart, Exclusive Books, Burger King, Coca-Cola and Shoprite, wrote a letter on Tuesday to the president warning of the consequences of the crisis. “We will not be able to guarantee stable supplies of food, medicines and other essential goods,” they said.
“The government needs to understand this, rather than believe we can maintain business as usual.”
It called for discussions on the state of disaster at the National Economic Development and Labour Council (Nedlac), a forum on which government, business, labour and social partners gather to discuss policy.
It again called for exemption for businesses that burn tens of millions of rand in diesel for power to enable food production and retail from paying fuel and road tax levels, which are included in the price of diesel. These levies equal almost R6/l.
Meanwhile, AgriSA which represents the country’s farmers, warned in a statement that another minister could add to red tape, making it harder to solve the power crisis.
“The powers of this [electricity] ministry and its distinction from the ministries of mineral resources and energy and public enterprises must be clearly set out to avoid creating a bureaucratic nightmare that hinders rather than accelerates the resolution of the energy crisis.”
It questioned “the necessity and value of the declaration of a national state of disaster to address the crisis”.
AgriSA urged the use of disaster relief to partially exempt the parts of the agricultural sector dependent on electricity for irrigation, packing, processing, and cold storage from load-shedding above stage 4.
In January, it warned that farmers in the Northern Cape that used irrigation for crops such as maize, wheat and potatoes, could not water plans, and that food security was at risk. Farmers that require power to mill animal feed, slaughter animals or keep vegetables and milk in cold storage are also facing huge diesel costs and are struggling to keep businesses operational.
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