FEDHASA Western Cape, the provincial trade association for the hospitality industry, has intensified its efforts to mitigate the impacts of the electricity crisis, through engagements with tourism and hospitality stakeholders and energy experts.

The association hosted its inaugural ‘Talking Energy with FEDHASA’ Summit on Friday, March 3. Two back-to-back panel discussions were held during the event, respectively focusing on the relationship between hospitality and the public sector in energy provision, and switching to alternative energy solutions.

The summit came on the back of President Cyril Ramaphosa’s declaration of a National State of Disaster over the crisis.

Panellists included public-sector representatives, independent energy experts, economists, funders and entrepreneurs within the hospitality industry. Discussions, supported by case studies, centred on championing sustainable and long-term green energy solutions in the form of solar systems, storage batteries and inverters.

Lee-Anne Singer, FEDHASA Cape Chairperson, highlighted the impacts of energy insecurity on the country and particularly the hospitality sector.

“Economists predict that, were it not for Eskom’s failings, the country’s economy could be between 8-10% larger. The country experienced 81 business liquidations in January 2023, 13 of which were from the hospitality sector, this at a time when unemployment is still at almost a third of the population (32.7%),” said Singer.

In her opening address at the event, Western Cape Provincial Minister of Finance and Economic Opportunities, Mireille Wenger, outlined the province’s race to implement the Municipal Energy Resilience (MER) initiative. Starting in 2025, the MER will focus on enabling and unlocking municipal independent power procurement.

“This is the Western Cape government’s single biggest priority as it will enable municipalities, businesses and private households to generate, procure and sell power back to the provincial grid, making the province more energy resilient,” said Wenger.

‘First of many’ energy summits

FEDHASA has promised that this will be the first of many such energy summits.

“FEDHASA aims to help future-proof businesses in the tourism and hospitality industry, while supporting livelihoods by creating a unified platform for discourse and actionable results. This summit aims to foster collaboration, offer practical advice and assistance – financial and otherwise – to help the industry navigate the energy crisis, particularly as the tourism sector has the potential to be South Africa’s economic lifeline,” said Singer.

Meanwhile, FEDHASA National Chairperson Rosemary Anderson joined other industry leaders in welcoming the appointment of the new Minister of Tourism Patricia de Lille in Ramaphosa’s reshuffled cabinet. High hopes are also being placed on Dr Kgosientso Ramokgopa, who has been appointed Minister of Electricity in the Presidency, to guide the country out of the energy crisis.