An Investigation of the Challenges Affecting the Implementation of Renewable Energy During Loadshedding on Small, Medium, and Micro Enterprises in South African Local Government
Sanelise Magwaxaza ORCID ↗ · Uche Omoruyi ORCID ↗ · Xolisa Makubalo ORCID ↗
International Journal of Business Ecosystem & Strategy · 2026 · Vol. 8 / Issue 5 · 544-555
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Abstract
The significance of SMMEs in local government is closely associated with job creation and income generation; SMMEs subscribe to the stimulation of socioeconomics in South Africa. The main aim of the study was to investigate the challenges affecting the implementation of renewable energy on Small, Medium, and Micro Enterprises in South African Local Government. The study was conducted at Raymond Mhlaba Local Municipality in Alice and municipal officials and SMME owners taking part as participants within the same area. The study followed an interpretive philosophy with a case study research design. The sample size was 12 participants, using a non-probability sampling method and purposive sampling technique. The study's target population included SMME owners and municipal officials from the Directorate of Engineering and Services from Raymond Mhlaba Local Municipality. The study collected primary data using semi-structured interviews. Thematic Data Analysis was used to analyze the data. The study findings revealed financial barriers, lack of technical expertise, and the challenge of permits and approvals to connect renewable energy systems to the grid as the main challenges affecting the implementation of renewable energy for SMMEs. The study's recommendations include financial incentives through grants, capacity-building workshops, collaboration with various stakeholders, and community solar projects. The contribution of this study will be significant since most SMMEs struggle with electricity supply during load shedding, which negatively affects business production and operations.
Keywords: {'name': 'renewable energy; SMMEs; local economic development; Endogenous Growth Theory; load shedding'}
Authors & affiliations
Sanelise Magwaxaza
University of Fort Hare
Uche Omoruyi
University of Fort Hare
Xolisa Makubalo
University of Fort Hare
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