Small businesses to South Africa’s rescue

South Africa is experiencing a severe shortage of power, with more frequent and longer periods of load shedding than ever before. The country generates 80 percent of its electricity by burning coal, more than any other industrialized nation. However, this presents an opportunity for small and medium-sized businesses (SMBs) to lead the way in transitioning to a cleaner, more sustainable energy world.

According to the SME Climate Impact Report, SMBs contribute 29% of non-household emissions in South Africa, which means they have a key role to play in shifting towards renewable energy. The demand for renewables is growing, and President Cyril Ramaphosa recently announced reforms that will make it easier for businesses to invest in renewable energy. SMBs can benefit from this by providing and installing systems, manufacturing components, and playing a role in power storage and provision.

Renewable energy also provides a good opportunity for SMBs to improve their business resilience, sustainability, and efficiency. Solar panels and battery backup can be an excellent backup power source, and some municipalities even allow businesses to feed power back to the grid for a rebate. Becoming more sustainable can also enhance an SMB's standing with customers and suppliers.

It's clear the future is renewable. SMBs need to take their rightful place at the energy reform table to ensure they don't get left behind, and government and big business should tap into the resourcefulness and innovation of the SMB sector to fight for a faster and more successful transition towards renewable energy.