By Anoka Latchmiah
With deteriorating supplies, Sasol has confirmed they will stop supplying natural gas to South African businesses in June 2026. This lack of energy will affect all South African industries, particularly small towns such as Makhanda. Carara Agro Processing is one such business that will be impacted by the impending gas shortage. Starting as a small group of individuals, Carara Agro now has two highly esteemed processing plants. This business supplies packaged goods across Southern Africa. As a result, it is one of the most significant contributors to the local economy. The economic sustenance that Carara Agro supplies to the community makes the imminent energy crisis a massive concern.
Although gas is not a direct resource for the processing factory, office administrator Jessica Hains says, “Even though it is not a primary resource, it creates apprehension because it would likely affect one or some of our suppliers. For example, one of our ingredient’s suppliers or one of our packaging suppliers, in which case it will have a knock-on effect”. As is the case with all businesses, the suppliers of Carara Agro will equip themselves with the ability to face unforeseen circumstances, such as gas scarcity.
However, consequences will arise from Carara Agro’s suppliers’ continuity plan. Hains confirms this by saying, “Somewhere down the supply chain, it will have an influence on us. Whether it will be that suppliers have to increase prices as they are experiencing shortages themselves, it makes their reliability questionable. The knock-on effect involving the supply chain of this factory may relate to reliability alongside tangible changes. The setback of Sasol’s revelation could make Carara Agro’s reliability, on which they pride themselves, questionable.
Moreover, this setback presents a chance for Carara Agro to reevaluate their sustainability practices and invest in more resilient supply chain systems. Embracing eco-friendly alternatives and diversifying their sourcing channels can mitigate risks and align with evolving consumer demands for ethical and sustainable products.
