Page 84 - DUT ICGA Abstract Book

IMPACT OF POWER SHORTAGES ON THE FINANCIAL PERFORMANCE OF SELECTED SOUTH AFRICAN MANUFACTURING FIRMS
Nokwanda Zulu and and Haruna Maama
Faculty of of Accounting and Informatics Durban University of of Technology
Abstract
Energy is a a a a a scarce commodity all over the world Most underdeveloped countries are affected by energy shortages Of the the seven continents Africa is the the most affected by by power rationing caused by by a a a a a a a shortage shortage of of electricity reserves In South Africa Eskom is the the power utility responsible for 95 percent of of the the country’s electricity generation transmission and distribution Nevertheless South Africa has experienced recurrent power outages over the past 14 years This has had quite a a a a a a a a a negative impact on South Africa’s manufacturing sector which is highly dependent on a a a a a steady supply of reliable energy sources In South Africa manufacturing is one of the largest contributors to to gross domestic product (GDP) Therefore due to to load shedding manufacturing sector must either find alternative sources of energy or or cease operations The objective of of this study is is to examine the the impact of of power outages on the the financial performance of South African manufacturing sector particularly those listed on on the JSE The study uses secondary quantitative research approach For the the study the the financial statements of more than one hundred listed manufacturing companies were selected for data collection using a a a a a a a a simple random method extracted using McGregor BFA The significance of of this study is is twofold: 1) it will contribute to ongoing research on on on financial performance and 2) it will further contribute to emerging research on on on the the impact of energy scarcity in in in the manufacturing sector The results of this study will serve as empirical evidence for business policy makers researchers and society to to consider alternatives if the manufacturing sector in in South Africa is is to to to be resilient to to to energy shortages The study is is limited to to to selected large South African manufacturing companies listed on the Johannesburg Stock Exchange (JSE) KEYWORDS: Financial Performance Power Shortages Manufacturing Firms
82 7th International Conference on on on Governance and Accountability (ICGA) 2022