What energy crisis?

My colleagues may disagree, but I don't think I'm given to histrionics or generally alarmist responses. Nevertheless, I must admit to feeling distinctly queasy about the months ahead.

It all started with the cutting off of power to SA's mines. Admittedly, I know next to nothing about mining. However, I do know that international investors are more interested in our mining sector than any other.

So why would we send an alert - in bright, flashing neon lights - to those who put money into our stock markets, industries and social imperatives?

Of course, all of this has largely overshadowed the impact the blackouts will have on industry at large and the people of SA.

And yes, I don't like using the term "load-shedding". In my opinion, it is just a word used to try and reduce the necessary negative connotations that accompany our energy crisis.

Before saying too much on the matter, I waited to see what our listed ICT companies have to say.

In terms of the JSE's requirements, listed companies are compelled to tell shareholders of any risks that could impact on revenue or earnings. The energy crisis is, certainly, such a risk.

Faritec was the first ICT company to present its results post the emergence of this crisis. And sure as hell there was a warning.

"Faritec is not immune to the energy crisis that is gripping the country, but we have alternative sources in place to ensure continued trading and productivity, albeit at a cost. The impact of the energy crisis on some of our customers may be a little more severe and we may experience some slowing down of spend due to this. The economic outlook, currency and interest rates may also make trading conditions a little more difficult," it said.

The company was reporting on the six months to the end of December and so the impact of the power outages earlier this year had not yet reflected.

Make no mistake, until we establish additional generating capacity, the cost of doing business is going to go up, placing pressure on profit margins and earnings.

Kimberly Guest

Of course, we've seen little of the power shortages in the last two weeks and so for many, the issue has become a debate on the effectiveness, efficiency and foresight of Eskom and government.

But make no mistake, until we establish additional generating capacity, the cost of doing business is going to go up, placing pressure on profit margins and earnings.

An additional concern for ICT companies will be the reining in of spend by their customers. It is inevitable that some of these funds are going to be diverted to the acquisition of backup generators, uninterruptible power supplies (UPS), fuel and maintenance.

On the upside, those who are in with government should still find a plethora of opportunities to capitalise on; just watch those cash flows though, the public sector is a notorious slow payer.

Of course, there are going to be a handful of people who are not just going to survive the next five years, but emerge wealthier and more powerful than ever before.

These are the people who will sit down, consider the problem and look for the gaps that customers cannot ignore. Data recovery centres, UPS resellers, energy-efficient or green hardware sellers and off-site contact centres are a few ideas that come to my mind and I'll admit, I'm no visionary.

I'm keen to see who will be these victors; however, I can't get over my concern for those who will fall away.

It's not just the loss of an industry player that concerns me. It's the management who I have come to know - and mostly like - over time, their investors who may have poured their pensions into the concern, and their employees who need the job to keep a roof over the head, clothes on the children and a meal in the stomachs of loved ones.

Maybe I am histrionic and alarmist. Maybe I am being pessimistic. The one thing I have on my side is that I care enough to highlight these dangers before they too become crises.