Business stakeholders to address threats to economic growth

KZN Premier Mr Willies Mchunu is convening an urgent stakeholder meeting to address the growing disruption to business activity in Durban and broader KwaZulu-Natal.

This was announced on Thursday at a gathering of stakeholders representing organised business held at the opening of the African Renaissance Conference, following President Cyril Ramaphosa’s impassioned appeal for political killings to cease in KZN.

Announcing the plan, Mchunu explained: “The upcoming round table discussion will bring together organised business, government, law enforcement and social partners to address key issues that are threatening the province’s economic growth prospects. Durban and the broader KZN economy constitute the second biggest contributor to the national GDP. New opportunities that are in development for the benefit of Durban and KZN are now being placed under threat. It is clear that a coordinated and decisive response is required to provide adequate insight into the issues, restore order, safeguard lives and goods, ensure productivity continuity for industry, entrench the rule of law and reassure investors that our province remains a prime destination for investment.”

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In recent months, flare ups of violence have plagued the province, including the key incidents such as the N3 Mooi River toll gate truck torchings, violence and damage to public property in the Moses Mabhida Stadium, construction site invasions, extortions and rising tensions in townships between local and refugee traders, attacks on private citizens in public places including academic institutions and places of worship, political killings over the course of the past two years and blockades to the Durban Port which compromise businesses throughout the country.

Musa Makhunga, President of The Durban Chamber of Commerce, said these issues had given rise to a volatile business environment. Investors within the real estate sector are now reconsidering the deployment of capital into KZN due to the increased risks. Property developers are getting hit as a result, with subscription rates on new developments plummeting to unprecedented levels.

“A significant number of Durban businesses have sustained tremendous losses and several international companies are being held hostage to extortion by criminal elements. The first priority is to safeguard life, public and private property and goods in transit to avoid further losses and eliminate the growing anarchy. As organised business, we accept that while government has the responsibility of creating a conducive environment for business to thrive, it is incumbent upon business to contribute by providing economic opportunities and to comply with employment and trade laws and regulations,” said Makhunga.

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