In a recent statement shedding light on the economic toll of South Africa’s ongoing power crisis, leading business magnate Vivian Reddy unveiled staggering figures indicating the substantial financial burden imposed on businesses due to persistent load-shedding.
Reddy, renowned for his transformative Oceans Mall Umhlanga venture, estimated an annual expenditure of nearly R30 million ($1.55 million) solely on diesel to counter the disruptions caused by power outages.
Speaking at a meeting with stakeholders, including KwaZulu-Natal Minister in the Presidency Kgosientsho Ramokgopa, Reddy highlighted the dire situation faced by businesses in the region. He revealed that the Oceans development in Umhlanga alone spent R15 million ($777,000) annually on diesel to sustain operations during outages, while Sibaya Casino incurred expenses of R12 million ($621,000) for the same purpose.
Reddy advocates for collaborative approach amidst energy challenges
Expressing concern over the ongoing crisis, Reddy stressed the urgent need for teamwork between businesses and the government to lessen its impact. He highlighted the importance of considering solar and gas as alternative energy sources due to challenges like inadequate transmission infrastructure connecting energy to Eskom, the national electricity provider.
Although Reddy acknowledged the government’s actions, he urged for clearer communication about the duration and resolution of power cuts. He called for detailed updates on energy availability to help businesses plan better and participate in finding solutions. Moreover, stakeholders raised concerns about bureaucratic hurdles impeding partnerships between the private sector and energy producers.
The Oceans Mall and Radisson Blu – Vivian Reddy’s transformative investments
Vivian Reddy’s ascent to the pinnacle of South Africa’s business elite began in the early 1990s amid the nation’s historic transition from apartheid. A pioneer in diversification, Reddy’s conglomerate now encompasses the energy sector, casinos, healthcare, finance, and property development.
Despite his considerable wealth, what sets Reddy apart is his unwavering commitment to community development. In November 2022, Reddy introduced the Oceans Mall, a $68.5 million investment that not only revitalized Umhlanga but also created 1,300 permanent jobs and generated 3,500 jobs during construction.
Expanding into the hospitality sector, Reddy invested $52.7 million in the Radisson Blu hotel, reinforcing Durban’s global status. Reddy’s legacy extends beyond financial success to his dedicated efforts in shaping the future of South Africa.
