Business News: 45 000 Businesses Impacted By Looting and SA Unrest, R16 Billion Lost
- According to eThekwini Mayor Mxolisi Kaunda says Durban economy is reeling from the impact of the riots in the city
- Kaunda estimates that R16 billion in loss of stock and infrastructure due to looting that has taken place
- Retailers such as Clicks, Pick n Pay, Shoprite have estimated a combined R 5 billion lost due to the destruction of stores
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eThekwini Mayor Mxolisi Kaunda announced that Durban's economy has suffered a huge loss due to the lootings, theft and destruction of property that started in the KwaZulu-Natal province last week.
Speaking at a media briefing on Wednesday, Kaunda says the city has started to calculate the impact the riots and looting have had on the city's economy.
Source: Getty Images
As of now, 45 000 businesses have been closed, resulting in a loss of R16 billion in stock, as well as infrastructural and equipment damage according to the City Press.
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He also revealed that the lawlessness that has created chaos in Durban has harmed the businesses of 5 000 informal traders and 40 000 of those businesses affected were formal businesses including small businesses.
Kaunda added that a large number of small businesses may never recover. Following the destruction of malls, factories and certain warehouses, Kaunda stated that 129 000 jobs were at risk.
Reports say retailers have lost over R5 billion due to looting
The Clicks group says a total of 279 stores have had to close due to the destruction of malls and looting that has been happening in South Africa. 130 stores in Gauteng and 110 stores in the KwaZulu-Natal province. So far, 52 stores have been damaged across the country, according to BusinessTech.
Massmart, the Game and Makro holding company, says that as many as 30 of its stores have been looted and vandalised. The company's distribution centre in KwaZulu-Natal burned down as a result of the unrest.
Shoprite Holdings and Pick n Pay Stores stated that they have had to close down stores in KwaZulu-Natal And Gauteng due to the riots and theft. Shelves have been left empty and stores completely ransacked by rioters.
According to BusinessTech, Bloomberg reported that rioters have stolen food, electronics, and medical supplies from at least 800 establishments, costing retailers an estimated R5 billion.
This amount, according to the South African Consumer Goods Council, is unprecedented.
Fact Check: No, You won't have to wait 3 months for SASSA grants
Briefly News recently reported that a viral post circulating on social media has prompted SASSA to release a statement. The viral post alleges that SASSA beneficiaries will have to wait for another two to three months to receive their benefits. It tells citizens to be prepared for this, however, it is false.
SASSA stated that selected pay points have been temporarily closed due to the unrest in the country. The statement went on to say that all will return to normal in the week.
The rest of the viral image that was circulating on social media is in a native South African language.
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Source: Briefly News
