Businesses begin to recover from KZN unrest

THE Durban Chamber of Commerce and Industry said the recent unrest has translated to huge losses for businesses in and around the City.

Some businesses suffered extensive damage to their properties and many have been unable to reopen for trade since the unrest in July.

According to the CEO of Durban Chamber SMMEs, Palesa Phili, spaza shops and informal businesses are the worst affected.

“This sector is reliant mainly on daily and monthly income to sustain operations. They do not have access to additional capital, nor have business insurance to assist with their recovery should disaster occur,” she said.

When asked if the chamber has noticed a recovery for some businesses affected by the looting, Phili said, based on the Durban Chamber’s constant engagements with members and stakeholders, they can confidently say that businesses have gradually started to recover.

“We have seen several active business developments in areas where buildings were destroyed. The journey towards recovery is still a long one as each sector and business was impacted differently. We continue to work together through collaborative efforts that involve both the private and public sector to play our role in the assistance and business recovery,” said Phili.

In addition, she noted the chamber provides ongoing support for the business sector.

“Within the city precinct, as combined business representatives, we have seen several interventions being rollout by government to help aid businesses recovery. However, we believe a lot still needs to be done and can be done by government to regain the trust of the business community and to restore investor confidence,” said Phili.

She said it was important to highlight the fact that short-term relief measures were not sustainable and the business community is looking for solutions that will contribute towards long-term recovery and sustainability.

“These solutions will need strong collaborative involvement between the private and public sector to be rolled out. We are committed to playing a critical role and contribute to the overall business economic recovery and investor relations restoration,” said Phili.

Meanwhile, the South African Special Risk Insurance Association (Sasria) has, to date, paid out R5.8b in claims to businesses that suffered damages during the July unrest in KwaZulu-Natal and Gauteng.

This was revealed recently by the National Treasury and Sasria in a joint statement.

The two said that work had been underway to address the damages incurred and assist businesses to start operating again.

Sasria’s managing director, Cedric Masondo said, “Our discussions with National Treasury are in line with the desired determination of the best medium that can inject capital, as we look at how to be future-proof ready and acknowledge the lessons learnt during the unfortunate unrest in July.”

National Treasury indicated that R3.9b will be disbursed to Sasria following the conclusion of the recently tabled Special Appropriation Bill that was processed by parliament.

“It is expected that the additional support which has been flagged in the recent special appropriation will be concretised in the 2022 Budget,” reads the statement.

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