TFG Retail Group Loses R1 Billion Due to Loadshedding, SA Saddened: “This Economy Is Bleeding”

• Retail group TFG has reduced its full-year turnover in its local operations by R1 billion due to loadshedding
• The group was also forced to spend over R65 million on diesel, security and maintenance to deal with the power outages
• Citizens have expressed concerns over the group’s financial struggles, with many saying the economy is dying

JOHANNESBURG - Loadshedding has had catastrophic effects on retail group TFG and reduced its full-year turnover in local operations by R1 billion.

On Monday, 13 March, the group said the energy crisis and high-intensity power cuts are making it difficult for businesses to trade and operate. The update came ahead of its investor call later this week.

TFG said it would remain focused on minimising the operational and financial effects of loadshedding. However, the group said rolling blackouts have resulted in additional abnormal costs to the business, with retail purchases declining in some regions, according to TimesLIVE.

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The group was also forced to spend over R65 million on diesel, security and maintenance, all unbudgeted for. It has spent over R220 million on back-up power solutions to date, with more than R30 million expected to be incurred by the end of the 2023 financial year.

Meanwhile, portfolio manager and research analyst at Gryphon Asset Management, Casparus Treurnicht, told News24 that there was a definite possibility the drop could be driven by foreign investors being more cautious about investing in local businesses.

Treurnicht said consumers would end up paying for the financial drop in retailers. He added that the monetary pressure on buyers has also strained businesses across the country.

Mzansi saddened as TFG suffers financially

Rial Kloppers Visagie said:

“This is sad as TFG is a company that invests heavily in local manufacturing! That has a direct impact on local suppliers who employ people. People who support their families.”

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May Henry Joseph commented:

“Eskom has really buggered up this country's economy humongously.”

Itu Moloto posted:

“At least they are still standing. Loadshedding has collapsed township businesses.”

Si Mokoena wrote:

“This economy is bleeding.”

Khuleh Gama added:

“More job cuts. This is sad, yet the people who caused this are living lavishly.”

KZN municipalities owe over R2 billion to Eskom, Mzansi fuming: “Stop writing their debt off”

Briefly News also reported that municipalities in KwaZulu-Natal owe more than R2 billion to the country’s embattled power utility, Eskom.

KZN Finance MEC Peggy Nkonyeni disclosed the state of affairs during her provincial budget speech in Pietermaritzburg on Friday, 10 March. She said not only households are to blame, but government departments and their entities as well.

Nkonyeni said that of the province’s R2.7 billion debt, R850 million is overdue. She said payment for services is essential to ensure proper delivery.

Source: Briefly News