Durban - MORE than 320 000 people in the
eThekwini region have already lost their
source of income or employment as a
result of the Covid-19 lockdown, and
unemployment in the region is expected
to rise by 42%.
This was according to mayor Mxolisi Kaunda on Monday, speaking during a webinar on the economic recovery plan for eThekwini.
He said the municipality was taking a “pragmatic approach” in its plan to ensure business and residents survive the economic crisis that has left hundreds of thousands jobless.
“We can decide to be petty and self-absorbed, or we can decide to be pragmatic in response to this unprecedented reality that we face. If we are pragmatic, focused and implement our plans, future generations will remember us as leaders who defied the odds, and did the most for our city's economic recovery,” he said.
If this was not done, the lives of millions of people in eThekwini were at risk, the mayor said.
Kaunda said 327 000 people have lost their jobs or sources of income.
In addition, foreign direct investment worth about R10billion was put on hold because of the coronavirus, and the city also faced losing another R8.5bn of FDI because of Covid-19.
Kaunda said, however, that 32% of the city’s economy had returned since eThekwini had entered stage 4 of the lockdown.
A full recovery would take about 18 months, he said, adding: “There is a possibility that many businesses will shut down their operations."
Kaunda said the city had lost R1.5bn in revenue last month, and that it could not offer “blanket rates write-offs”.
The tourism industry had taken a beating and lost about R600million in April. It was expected to lose about R4bn by the end of the winter season, with 8200 jobs being lost in the sector, he said.
Municipality-sponsored events were postponed for the next six months, said Kaunda.
To try to save the economy, eThekwini had embarked on a number of initiatives, the mayor said.
“We are lobbying national government to target R30bn of support to large and small businesses in eThekwini.”
The city had also planned to invest R586m over the next 12 months to stimulate the local economy and keep it afloat. Kaunda said they would do this through re-categorising B&B accommodation rates from commercial to residential, six-month rental holidays to informal businesses in areas owned by eThekwini and waiving development application fees, among other initiatives.
Durban Chamber of Commerce and Industry president Nigel Ward said Covid-19 should be used to breathe new life into the city's economy. He said these were uncharted waters and no one had experience in dealing with a situation such as this. “Let’s not blame each other but work together as partnerships will be key,” Ward said.
He also said it was unlikely that eThekwini would receive any foreign tourists this year. Local tourists would also take time to return to eThekwini, he said.
IFP councillor Mdu Nkosi said the city’s plans were good on paper, but practically it was another matter altogether. He said in theory the municipality had a relationship with entities like the Business Chamber, but there was not much of a relationship with other entities such as small businesses.
DA caucus leader Nicole Graham said the city’s ideas were good, but the problem was that they did not address the scale of the jobs bloodbath in the region. She said the DA had done a business survey and would present the results and offer more comprehensive solutions during the week.