Cost to economy due to looting and arson in KZN estimated to be over R1 billion

WHILE more than 750 people have over the past five days been arrested for the wanton destruction and looting of businesses and properties, the destruction to private and public infrastructure in the province has been estimated to be more than R1 billion.

That figure is expected to rise as incidents of looting and arson continues seemingly unabated. 

This was revealed by KwaZulu-Natal Premier Sihle Zikalala who said a multi-pronged response plan to deal with the protests has been developed and will be implemented by law enforcement agencies.

“The violent protests have had a negative impact on the economy of our province. This is largely because the protests have targeted key economic centres and infrastructure, including shopping malls, trucks and major arteries such as routes on the N2 and N3.

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“More significantly, this violence has crippled our small and emerging businesses. Hawkers cannot sell because cities are shut down,” Zikalala said.

With the taxi industry not operating, it is losing money and risks losing vehicles due to being unable to meet their commitment to the banks.

“The sectors that have been severely impacted include freight and retail. However, other sectors were not spared, as many companies had to suspend their operations due to the inability to transport materials and stock.

“These incidents have the potential to dampen investor confidence and derail our economic recovery efforts. The social cost of the damage might come in the form of increased unemployment and increased poverty in years to come,” the Premier said.