Durban - KWAZULU-NATAL businesses and business confidence as a whole – which has already been battered by the impact of the Covid-19 pandemic, the recent floods and the aftermath of last July’s unrest – cannot afford any further disruptions or destruction to the economy.
This was said by economists after traffic was brought to a standstill for hours yesterday in parts of the province due to truck blockades on the N3 at Van Reenen’s Pass, at Maydon Wharf near the Durban Harbour, and on the N11 near Newcastle.
Dr Ntokozo Nzimande, a senior lecturer in the Department of Economics at UCT, said that any blockades or destruction to property would severely harm the already weakened business confidence in KZN.
He said this would have a devastating impact on the province’s economic performance and unemployment figures.
“KZN business confidence has not recovered, or at least not fully, from the impact of the July unrest. Any disturbance now will chase investors away and lead to worsening unemployment in the province. The protest will have an impact on the already weak economy.”
Professor Bonke Dumisa, an independent economic analyst, said that most deliveries from the Durban Port go to Joburg via the N3, therefore the whole supply chain had been disrupted yesterday.
“We must remember that deliveries are done by contract and at an expected time. When there are delays caused by truck blockades, goods are not delivered on time and millions of rand are lost per hour.
“This undoubtedly has a major impact on the South African and KwaZulu-Natal economy.”
Dumisa added other provinces and neighbouring countries could look at alternative routes to transport cargo to avoid the volatile situation on KZN roads.
“Gauteng, in particular, could look at alternative routes for deliveries such as via the Mozambique port, which is not a good thing for the South African economy.”
Dumisa added the KZN economy had not recovered from last July’s unrest.
“The economy is still trying to recover. We must remember that trucks were targeted in the July unrest.
“We also had the April and May floods which caused major damage and it will take time to recover. These protests on the roads are not sustainable for the KwaZulu-Natal economy.”
Asked whether there could be a business exodus from the province, due to the challenges companies faced, Dumisa said while moving was not a simple exercise, as some did not have the resources to do so, it remained a possibility.
Yesterday’s blockade comes after trucks blocked the N3 on Tuesday in the Free State. It is believed the blockades were over the employment of foreign nationals in the road freight sector. Police confirmed vehicles that were causing the obstruction were towed away yesterday.
Provincial police spokesperson Brigadier Jay Naicker said the N3 was reopened and that four men had been arrested for obstructing the national route, damaging essential infrastructure and economic sabotage.
Gavin Kelly, CEO of the Road Freight Association, in a letter to President Cyril Ramaphosa, called for intervention.
“The whole logistics supply chain is under attack. Again, all major routes are being targeted. Road freight companies (transporters) find themselves being targeted, attacked and being prevented from plying their business by forces under the pretext of foreign nationals ‘taking jobs away from citizens’.”
KZN Department of Transport spokesperson Kwanele Ncalane said the provincial government was disturbed by the continuous blockages on the roads.
“This morning on the N3 and at Ashburton there was a blockage which resulted in a complete shutdown of the road. However, through the intervention of law enforcement agencies, lanes have been opened. In Maydon Wharf there have been some disruptions this morning and on the N11.”
Ncalane said the government regarded the blockades as being unwarranted as it had “opened the doors of engagement” with the truck drivers.
“We have worked with them on a number of issues including joint law enforcement operations where we have been targeting lawlessness. In addition we have also engaged with the national task team on a number of legislative amendments which are aimed at addressing all the issues that truck drivers have raised.”
All Truck Drivers Forum and Allied South Africa secretary Sifiso Nyathi said that they had no involvement in the protests in the Free State on Tuesday and yesterday on the N3 but said they supported the move.
“We support the protest. We are tired of employers overlooking us local drivers and undermining the citizens of South Africa. We are tired of foreign drivers being appreciated more than South Africans.”