The initial results of a business survey being conducted by the City of Ethekwini on the economic impact on businesses following the recent civil unrest paint a bleak picture.
According to a report from the Ethekwini municipality, the preliminary results are based on input from 400 respondents over five days and represent a small sample of those impacted. It indicates that the process of rebuilding the economy will be a long and challenging one as business confidence has declined significantly.
“The estimates suggest that the worst-hit sectors include wholesale and retail trade, logistics, manufacturing and construction which sustained R15 billion in damages. Though the unrest was widespread, the results reflect that the main effect was experienced in Umhlanga, Cornubia, Springfield, Riverhorse Valley, Pinetown, New Germany, Westmead, the inner city, Southern Industrial Complex and Hammarsdale-Cato Ridge,” the report read.
The port and logistics sectors were also not able to operate during the unrest, and many cargo owners suffered increased costs as cargoes were diverted to other ports.
Quoted in the report, Ethekwini Mayor Mxolisi Kaunda said that just when operations at the Port of Durban were starting to get back on track, all progress was undone by Transnet’s cyberattack.
“The reputational damage due to the unrest will set the City and country back in terms of attracting foreign direct investment; even domestic businesses will be reluctant to make any significant new investments into the economy unless there are clear indications that government is able to secure investments and uphold law and order,” he said.
