DURBAN - THE ongoing looting and destruction of property – estimated at R100 million – sent a glaring message to investors to stay out of South Africa. And ultimately the aftermath would hit the pockets of the poor the hardest.
These were the warnings issued by the business sector and economists amid threats of heightened violence today. Sporadic violent protests, which began across KwaZulu-Natal last Thursday, yesterday spread to other parts of the country, including Gauteng, as protesters continued to demand the release of former president Jacob Zuma. Zuma began a 15-month prison sentence last week after the Constitutional Court found him guilty of contempt of court.
Organised business in the Midlands region, the scene of the burning of trucks which forced a shutdown of the N3 economic thoroughfare, said the long-term effects would be felt by the most vulnerable in society.
By last night, a total of 37 trucks had been torched in various parts of KZN. Mooi River and its surrounds were the worst affected with at least 28 trucks torched and six retail shops looted.
“Not only is this further decimating our already fragile economy, but it is sending a clear message to investors to stay clear of SA,” said Melanie Veness, the chief executive of the Pietermaritzburg and Midlands Chamber of Business, as a provincial ministerial task team was deployed to monitor the situation.
“It’s hurting us now as the costs escalate, but it’s also hurting our future and make no mistake, it’s the most vulnerable in our society who will bear the costs of this anarchy,” she said.
Road Freight Association (RFA) chief executive Gavin Kelly said there were small business owners who had lost everything. “There are companies that may well now be closed forever,” he said, adding that the country had lost the Gateway to Africa status it once held. He said some cargo owners were now looking at alternative routes through Namibia, Angola, Mozambique and even further north.
In the Ilembe region, north of Durban, where the unrest first broke out on Friday, there were major disruptions to transportation.
“This resulted from traffic congestion caused by motorcades and HGV (heavy goods vehicle) blockades especially on toll roads and drivers being forced to dump their goods on access roads,” said Cobus Oelofse, the chief executive of the Ilembe Chamber of Commerce, Industry and Tourism. Trading of a number of retailers was affected mostly as a precaution, but also as a result of intimidation,” said Oelofse.
“(The chamber) urges all leadership, including political and community leaders, to constructively contribute to minimise the impact on our already battered economy and investor reputation,” he said.
Professor Irrshad Kaseeram, a senior economist with the University of Zululand, said the protests would lead to greater unemployment.
“We need stability and investment to attain the desired growth rate of 7%. Unfortunately given (the current) circumstances, we won’t reach 3.5%. These continued acts of assault on our democracy do not augur well for our future for marginal decisions by investors.
“Over time, this will work against rapid development of SA into a high growth economy,” said Kaseeram, who called on the Zuma Foundation to plead with supporters for calm.
The provincial government deployed Economic Development, Tourism and Environmental Affairs MEC Ravi Pillay and Transport, Community Safety and Liaison MEC Peggy Nkonyeni to Mooi River yesterday.
“Conservative estimates are that the damage to private and public property is at R100m. With KZN having two strategic ports (Durban and Richards Bay), this disruption is likely to also have a negative economic impact on other parts of the country,” the cabinet said.
“The N3 is a lifeblood of the economy, from a logistics point of view, connecting the (Durban) harbour and the country’s economic hub which is Gauteng. We call for calm. We share the pain but we are very clear that the rule of law and the Constitution are sacrosanct. There is a clear line between genuine protesting and the criminality we are seeing here in Mooi River and other parts of the province,” said Pillay.
A multi-pronged response plan was being implemented by law enforcement agencies, the provincial government said yesterday.
The plan included high police visibility in hot spots, and engaging with business, civil society, the taxi and transport industry and organised labour, among others.
THE MERCURY