Disruptive load shedding and its dynamic impact on municipal financial performance in KwaZulu-Natal, South Africa
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Author(s)Khulani Mzimela ,Jean Damascene MvunabandiLink to ORCID Index: https://orcid.org/0000-0002-3356-9493
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Bomi Cyril NomlalaLink to ORCID Index: https://orcid.org/0000-0001-5471-1172
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DOIhttp://dx.doi.org/10.21511/pmf.14(3).2025.10
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Article InfoVolume 14 2025, Issue #3, pp. 130-144
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20 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Type of the article: Research Article
Abstract
Electricity energy consumption plays a significant role in both local and international financial development. However, an imbalance between demand and supply of energy, especially electricity, impedes financial performance on both national and local levels. The purpose of this study is to investigate the dynamic impact of load shedding on financial performance in KwaZulu-Natal. A panel Autoregressive Distributed Lag (ARDL) model, the Toda-Yamamoto Granger causality test, and Error Correction Model (ECM) approaches were applied to a data sample from seven district municipalities for a period from 2016 to 2022. The results reveal an inverse long-term relationship between load shedding and municipal financial performance. Additionally, the Toda-Yamamoto causality analysis indicates a short-run bidirectional causality between load shedding and financial performance. This implies that a high level of electricity cuts leads to poor financial performance. Based on these findings, the study recommends that the government and policymakers implement strategies to improve electricity generation and distribution, and foster a more competitive energy market by allowing the entry of multiple electricity producers beyond Eskom. Furthermore, it advocates for increased investment in alternative energy sources such as solar, wind, and biogas as a means to mitigate load shedding and its adverse effects.
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JEL Classification (Paper profile tab)D58, M41, L94, R51
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References69
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Tables8
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Figures0
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- Table 1. Description of variables
- Table 2. Summary statistics
- Table 3. Panel unit root results
- Table 4. Estimated long-run results
- Table 5. The error correction model (ECM) and short-run dynamics
- Table 6. Toda-Yamamoto Granger causality results
- Table 7. Diagnostic test results
- Table 8. Cross-section dependence test
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Anis Ali
doi: http://dx.doi.org/10.21511/ppm.18(2).2020.03
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The growth strategies of a global pharmaceutical company: a case study of Aspen Pharmacare Holdings Limited
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The influence of digital transformation on the growth of small and medium enterprises in South Africa
Sanele Jeza ,
Lawrence Mpele Lekhanya
doi: http://dx.doi.org/10.21511/ppm.20(3).2022.24
Problems and Perspectives in Management Volume 20, 2022 Issue #3 pp. 297-309 Views: 3720 Downloads: 1684 TO CITE АНОТАЦІЯFrom a global perspective, the business environment has become highly dynamic, unpredictable, and competitive due to external forces – mostly technology – that generate change. The aim of this study is to investigate the influence of digital technologies on South African business sectors. The sample includes small and medium enterprises (SMEs) in the KwaZulu-Natal province. Being qualitative by design, the study used semi-structured interviews for data collection, with eight interviews in the Durban area. SME managers were purposefully selected as participants based on their management positions in the business/company and that they oversee the business operation and understand the influence of digital transformation in the business. The interviews were then transcribed after data collection to determine any recurring themes. In the effectiveness of digital transformation, the study identified themes such as “gaining exposure” and “gaining effective sales figures” as a result of implementing digital transformation, which was indicated by six of eight participants. The findings showed that digital transformation significantly affects building customer relationships and ensuring easy accessibility of the business. The results further indicate online selling and digital marketing as the leading digital platforms successfully implemented by most South African SMEs. Lastly, the study revealed digital maintenance and rapid changes in technology as challenging factors. Moreover, the study recommends that South African SMEs implement more available digital technologies to gain additional exposure.
