Looted businesses need urgent financial support

Responding to the last week of violence and looting, the DA has called upon the Gauteng Enterprise Propeller (GEP) to financially support small businesses likely to close for good after the unrest in Gauteng and other parts of the country.

The last week of criminality that has wreaked havoc in the country also impacted businesses in Boksburg where many formal retailers and informal traders, including businesses in various parts of Benoni and foreign-owned shops, were targeted.

The unrest also saw businesses, mostly retailers temporarily shutting their doors as precautionary measures.

The party described the looting and destruction of property as a ‘double blow’ for SMMEs, which have also had to face tougher economic conditions as a result of the pandemic.

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While the violent events saw major retailers suffering significant damage, the DA warned it will ultimately be smaller and medium-sized businesses that likely won’t reopen their doors again.

Gauteng Shadow MEC for Economic Development MakashuGana le pointed out that many SMMEs, unlike big businesses, do not have insurance. Therefore, it will be terribly tough for small business owners to find their feet without financial support.

“For that reason and many others, GEP should immediately release the R250-million they have been sitting on since last year to assist small businesses that have been damaged and looted during the recent unrest that flared up in the province.

“In many cases, affected small businesses may not have adequate insurance or no insurance at all to cover the damage and loss of stock incurred, which may result in their permanent closure, having already endured economic-killing lockdown restrictions,” said Gana.

Gana pointed out that township economies have suffered a near-fatal blow from the looting and destruction of property and that many township residents employed by the targeted malls have lost their jobs.

“So many more households are set to face hard times ahead, wondering how they will get food onto the table. The R250-m will go a long way to helping small businesses get on their feet again, salvage some jobs and get the wheels of the provincial economy turning again.

“In addition, the government should be working with communities and business chambers to ensure there is security for businesses in the province, especially those that invest in the townships.”

The looting and destruction are expected to also harm investment in townships, with the private sector hesitant on investing in affected areas again.

“Small businesses affected by the looting deserve all the support they can get from the government, as the township economy is a key driver of job creation in the province. We will continue to push the GEP to provide support to small businesses so that economic recovery in the province can be realised,” promised Gana.

In light of that, this publication has sent media enquiries to both the metro and GEP seeking information on whether authorities in the relevant departments are working on relief packages for businesses affected by the riots – particularly with a specific focus on providing financial relief to businesses that are not insured for civil unrest.

The chaos and looting began in KwaZulu-Natal and subsequently spread to Gauteng and other provinces since former president Jacob Zuma’s arrest recently. Initially, the protesters were calling for the release of the former president; however, the situation later turned into acts of criminality.

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