eBusiness Weekly
KENTUCKY Fried Chicken (KFC) is temporarily closing some of its fried-chicken outlets in South Africa due to power cuts imposed by state electricity provider Eskom.
Posting on its official Twitter handle, KFC said: “We are sorry, but due to the ongoing load shedding, some of our restaurants will be temporarily closed, while others may have limited availability on some of your favourite menu items.
“We apologise for the inconvenience and will be back soon.”
According to an online publication, moneyweb, the Yum! Brands Inc. chain made the decision after the number of blackout days passed 200 on Tuesday this week, a record.
Eskom supplies more than 90 percent of South Africa’s electricity and has implemented nationwide power cuts, known locally as load shedding, to prevent the grid from total collapse.
Meanwhile, Bloomberg reported that Eskom has indicated on its official Twitter handle that it will ramp up power cuts from stage 1 load shedding, where it removes 1 000MW from the grid, to stage 3 from 4 pm until 5 am for the rest of the week.
It will cut 2 000MW from 5 am to 4 pm starting this week Wednesday.
Eskom has implemented record rotational blackouts this year because its old and poorly maintained power stations continually break down.
The energy shortages have dented investment and weighed on output.
“The fluctuations in the supply of electricity have profound implications for the economy and could be viewed as the biggest risk to growth and through that the future of South Africa,” Sygnia Ltd’s executive chair Magda Wierzycka was quoted as saying in an e-mailed response to questions from Bloomberg.
The South African Reserve Bank said last month that power outages mean the economy is only likely to expand by 0,1 percent in the final quarter of the year.
The monetary authority predicts economic growth will slow to 1,1 percent in 2023 from 1,8 percent this year and it assumes increased power rationing will shave 0,6 percentage points off output.
The resignation of Andre de Ruyter as chief executive officer of Eskom gives South Africa the opportunity to bring in a skilled and experienced chief executive officer that has the requisite political support, Wierzycka said.
“It will not be easy to find someone suitable, but the government cannot afford to get it wrong one more time.”
Eskom supplies most of the nation’s electricity and doesn’t generate enough revenue to cover its operating costs and interest bill, leaving it dependent on state bailouts to survive.
Its outgoing CEO warned Friday that the power supply outlook for next year will be very constrained, and blackouts will continue until an additional 4 000 megawatts to 6 000 megawatts of generating capacity is added to the grid. –moneyweb/bloomberg
