Tag: public looting

It’s that time again, early in the new year, when we are speculating as to what 2022 may hold, in this case for the property part of the South African economy. In a still-weak, albeit improved, economy with rising interest rates, property market fireworks don’t appear to be on the cards this year.

The past decade has not been easy for small and medium enterprise (SME) owners. GDP growth has been almost non-existent for most of the past ten years, and despite a widely held – and correct – belief that SMEs hold the keys to job creation and economic growth, they’ve largely been left to fend for themselves.

Businesses in South Africa experienced major losses in July from physical damage, business interruption, and loss of revenue, looting, vandalism caused by civil commotion, protests and riots which resulted in about $3.4 billion in lost output and placed 150,000 jobs at risk.

In July 2021, South Africa was ravaged by lootings and violent protests following the incarceration of former President Jacob Zuma. Reports suggest that as many as 117 people have been killed and hundreds of businesses were lost or destroyed as a result of the violence that erupted during demonstrations across the country.

After the shocking riots that engulfed South Africa last month, all of us in this beautiful country have cause for deep reflection, regardless of our race, religion, age or political views. Was this a singular event, why did it happen? Few would deny that the inequality in our society, poverty and unemployment of so many are among the root causes.

The recent civil unrest raised many concerns about medicine supply chain continuity, particularly for people living with chronic health conditions and those with higher clinical risk. The good news is that when a particular medicine is not available, there is usually no need for treatment to be disrupted.

As calm steadily returns after the recent social unrest, analysts are hard at work tallying the cost of the looting and disruption to economic activity. So far, the damage to 2021 growth is estimated at between 0.5 and 1.0 percentage points.

The latest riots and looting in South Africa have been utterly devastating for local businesses. When the dust eventually settles, the reality is that many businesses are going to have a tough time bouncing back from the destruction. Those that are able to pick up the pieces will be the ones that have business interruption insurance in place.

Employers seeking an appropriate response to the civil unrest and public looting in Gauteng, KwaZulu-Natal and other parts of South Africa will have to consider different factual circumstances. As a result of the civil unrest and public looting in Gauteng, KwaZulu-Natal and elsewhere, employers may face one of the three scenarios.

We strongly condemns the wanton destruction of the country’s key infrastructure, goods and property and the senseless loss of lives over the past week. We respect South Africa’s law and the Constitution, but it is time to take action. It is time for us to work together, make plans, implement those plans and ensure that our supply chains continue to operate.