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

Isuzu Motors South Africa spent close to R400,000 on diesel in a single day to keep its plant running during an unplanned 15-hour power outage that plunged businesses in Gqeberha’s Struandale and Deal Party industrial areas into darkness on Thursday, 8 October. The company has burned through approximately R1-million on diesel so far this year to keep generators running during electricity outages.

The disruption – the latest in a series of blackouts hitting the region’s industrial centres – has reignited frustration over Nelson Mandela Bay’s crumbling electrical infrastructure, lack of maintenance and persistent asset vandalism.

The Nelson Mandela Bay Business Chamber has warned that regular power outages undermine the metro’s reputation as a reliable investment destination.

Between January 2025 and October 2026, the chamber recorded 109 unplanned outages in the metro’s key industrial areas.

For manufacturers, each interruption comes at a cost, with businesses forced to spend hundreds of thousands of rands a day on diesel to keep generators running.

The cost of running generators has risen alongside diesel prices, which climbed above R31 a litre in October, adding to the financial burden on businesses already grappling with repeated electricity outages.

Businesses of all sizes contribute an estimated 75% of the metro’s electricity revenue, yet are forced to spend more on diesel and generator operations to keep production going during outages.

The chamber also warned that deteriorating electricity infrastructure threatens the sustainability of the local manufacturing sector and the direct and indirect jobs it supports.

The chamber’s chief executive officer, Denise van Huyssteen, said electricity outages represent far more than lost production time. She said they translate into lost revenue, wasted materials, damaged machinery, lost wages and missed customer and export orders: 

“When manufacturers cannot rely on electricity supply, they cannot operate efficiently, meet production targets or fulfil orders on time. The consequences extend beyond individual factories, affecting workers, suppliers and the broader local economy.”

Manufacturing accounts for an estimated 22% of Nelson Mandela Bay’s economic output and supports jobs and business activity across sectors including services, construction and retail.

Significant pressure

Van Huyssteen said the sector was already under significant pressure from high electricity costs, cheap imports, logistics inefficiencies, the cost of managing safety and security risks, and the deterioration of essential municipal infrastructure, including roads, electricity, water and sanitation.

“Factories cannot keep their doors open if the basics do not work and the operating environment is not enabling. Manufacturers need reliable and consistent municipal services to plan their operations, remain competitive and protect jobs. Without urgent intervention, the cumulative effect of these challenges increases the risk of further deindustrialisation,” she said.

Van Huyssteen said the latest outage had been attributed to vandalism, highlighting the need for stronger security at critical municipal infrastructure, including substations and pump stations. She called for measures such as armed response, camera surveillance and active monitoring.

The chamber has urged the metro to address infrastructure and security failures, warning that continued outages threaten businesses and jobs in a region where the official unemployment rate exceeds 33%.

“Business is prepared to be part of the solution, but our contribution must complement, not replace, the municipality’s responsibilities and constitutional obligations. Protecting critical infrastructure is not optional; it is essential to safeguarding economic activity, service delivery and employment,” she said.

Meanwhile, chamber members have “adopted” 23 substations, helping to improve security and maintenance to keep them operational.

The chamber has repeatedly raised concerns about the state of the metro’s electricity infrastructure and the need for urgent remedial action. 

The priorities highlighted by the chamber include restoring the 132kV circuit breakers, addressing issues affecting the Chatty-Ditchling 132kV feeder, repairing the defective Ditchling/Swartkops 66kV switch and improving the overall condition of the Swartkops 66kV switchyard.

Backup generators

Isuzu Motors South Africa’s department executive for corporate affairs, Nandi Matomela, said the company did not have to send workers home during the 8 October outage because backup generators allowed production to continue. However, running the generators came at a high cost.

At peak production, the plant consumes roughly 1,200 litres of diesel per hour. During the recent outage, it used about 13,070 litres of diesel, based on an eight-hour production shift followed by baseload operations. These costs are in addition to the indirect operational pressures created when suppliers and other industrial businesses are unable to operate or need to recover lost production time.

“For the 8 October outage alone, Isuzu Motors incurred approximately R380,000 in diesel costs to support generator use and maintain operations. The total diesel cost for generator support during outage-related events in 2026 to date is approximately R1-million,” said Matomela.

She added that with current diesel prices and the frequency of electricity interruptions, this cost could increase materially by year-end if the stability of the 132kV and 66kV electrical supply systems serving industry is not improved.

Struandale and Deal Party are plagued by both planned and unplanned interruptions. 

Planned outages are generally communicated in advance, which allows businesses to prepare. 

Matomela said unplanned outages created operational risks because they occurred without warning. Restarting the plant after an interruption took approximately 90 minutes.

“In 2026 to date, there have been 10 unplanned outages and three planned outages affecting operations. In addition, electricity dips linked to Eskom and municipal supply can also affect operations, depending on severity. For example, the paint shop requires approximately 55 minutes to restart after certain events,” she said.

Residents also hit

Economist Charles Wait pointed out that power outages harm more than just business bottom lines – they also affect residential areas where employees live.

“What about the cost of those outages on their wellbeing and consequently on their productivity when they get to work?” Wait asked.

To safeguard the local economy, Wait urged the municipality to focus on the "two Cs": competitiveness and coordination. Rather than losing employers or forcing them to downscale, local government must protect what it already has. He noted that reliable electricity, clean water, sound road infrastructure and public safety were non-negotiable for retaining existing businesses and attracting new investment.

“This is where competition enters the picture,” he explained. “These two solutions can only work when your city or metropole is competitive compared to others. Competitiveness goes further than stable electricity supplies.

“The local authority level involves coordination among local authority directorates. How often do we not see in the local press that one directorate blames the other?

“The cleansing [public health] department blames supply chain management for not renewing the contract with the tyre dealers; consequently, the refuse trucks are stuck. The other excuse we so often hear is ageing infrastructure. I do not doubt the truth of that, but the question is: what is done to renew infrastructure, specifically in respect of electricity?”

Wait questioned whether key municipal departments – including electricity, supply chain management, budget, metro police and the city manager’s office – were coordinating effectively to protect active infrastructure projects.

Municipal response

Municipal spokesperson Sithembiso Soyaya said the municipality acknowledged the impact that prolonged electricity interruptions had on manufacturers and businesses in Deal Party, Struandale, iBhayi and surrounding industrial areas.

He said the city was committed to addressing infrastructure vulnerabilities, strengthening preventative maintenance and protecting critical electricity assets.

However, Soyaya said it was important to distinguish between an outage caused by equipment failure arising from infrastructure deterioration and one resulting from criminal interference with critical electricity infrastructure.

“In this instance, the technical investigation established that vandalism was the cause. Such criminal acts compromise the integrity of the electricity network, disrupt essential services and divert municipal resources towards emergency repairs that could otherwise support planned maintenance and infrastructure improvements.”

Soyaya said the metro was addressing the challenge by maintaining and improving electricity infrastructure while strengthening security measures to protect these assets.

“The municipality will continue to assess network performance and prioritise maintenance interventions in accordance with technical requirements and available resources,” he said. DM