- Minister Ebrahim Patel announced on Monday that his department approved R1.5 billion in business support funding
- The move comes following the unrest that devastated Gauteng and KwaZulu-Natal in July
- Saffas reacted to the announcement, with many expecting that corruption will once again rear its ugly head
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Businesses that bore the brunt of the wave of public violence and destruction across Gauteng and KwaZulu-Natal amid the unrest in July are set to receive a R1.5 billion boost.
Minister of Trade, Industry and Competition (DTIC), Ebrahim Patel, confirmed at a media briefing on Monday that the relief funds had been approved.
Patel said the scale of the losses sustained by the affected businesses was extensive. Meanwhile, his department has approved direct support in 123 separate transactions in response to a request for aid from a company or association.
1st of November stirs up hope as SA prepares for change: “Praying for South Africans to do the right thing”
"We have now rendered support to 320 business sites when tallying the number of sites or buildings that were affected,” said Patel.
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SABC News reported that in October the National Empowerment Fund (NEF) and the Solidarity Fund established a R450 million SMME Support Programme targeting businesses that suffered losses.
Mzansi, as expected, reacted to the development on social media, expressing scepticism as to whether all affected businesses will get what is due.
Many others cited corruption and a lack of transparency as possible reasons why the move would not translate into an overwhelming success.
SA critical of business support funding
Briefly News went down the comments to bring readers all the reactions from ordinary citizens.
@Tshiamo Maphage wrote:
"Just hope it will be allocated to the right people who were affected. More transparency to the public must be a priority."
@Ricky Reddy said:
"Make the looters and instigators also pay or prison sentence."
@Themba Eugene added:
"SA has money, before the looting we believed we were struggling until looting happened then boom 1,5 billion SRD grant stretched till next year March."
45 000 Businesses impacted by looting and SA unrest, R16 billion lost
Earlier, Briefly News previously reported that the eThekwini Mayor Mxolisi Kaunda previously announced that Durban's economy has suffered a huge loss due to the lootings, theft and destruction of property.
Speaking at a media briefing, Kaunda says the city has started to calculate the impact the riots and looting have had on the city's economy.
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 City Press.
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.