BEATING THE BLACKOUTS: Power outages force Gqeberha manufacturers to spend big on fuel to keep lights on

Isuzu Motors South Africa incurred a staggering R400,000 in diesel expenses in a single day following an unplanned 15-hour power outage in Gqeberha, South Africa. The plant, located in the Struandale and Deal Party industrial areas, was plunged into darkness, straining the company's operations and financial resources.

This incident is part of a growing trend of power outages in the region, which have left manufacturers grappling with significant financial burdens. Between January 2025 and October 2026, the Nelson Mandela Bay Business Chamber recorded 109 unplanned outages in key industrial zones. Each disturbance forces businesses to spend substantial sums on diesel to keep generators running, exacerbating the financial strain of already high electricity costs.

The cost of maintaining generators has risen with diesel prices, which surpassed R31 per litre in October, further exacerbating the financial strain on businesses. These outages have a broader impact, affecting not only production but also wages, customer orders, and export activities. Denise van Huyssteen, CEO of the chamber, emphasized that these disruptions go beyond mere production losses, as they result in wasted materials, damaged machinery, and missed business opportunities.

The manufacturing sector contributes 22% to Nelson Mandela Bay's economic output and supports jobs and business activity across various industries. However, the sector faces mounting pressure from high electricity costs, cheap imports, logistics inefficiencies, safety and security risks, and the deterioration of essential infrastructure.

The chamber has called for urgent action to restore critical electrical infrastructure, including 132kV and 66kV circuit breakers, and to enhance security measures at substations and pump stations.

While some companies, like Isuzu Motors, have backup generators to maintain operations during outages, the costs associated with these measures are substantial. A single outage can result in significant diesel expenses, with the plant using approximately 13,070 litres of diesel over eight hours. If the current trend continues, these costs could escalate further by year-end.