Looting-hit KZN firms wary of restarting amid security fears

Business people in KwaZuluNatal remain in a deep state of uncertainty, with some even wondering if it is worth rebuilding businesses destroyed during the recent unrest.

KwaZulu-Natal premier Sihle Zikalala has gone so far as to consider declaring a state of disaster in the region that suffered losses estimated at more than R20bn.

“We are working with the national government on the extensive social and economic relief package for affected sectors. As KwaZulu-Natal, we are calling for both relief and stimulus packages. While we are still taking full stock of the damage caused, we are also preparing for the possibility that we may be required to call for the declaration of a state of disaster in KwaZulu-Natal,” Zikalala said.

For a region with the secondlargest economy in the country, which contributes 16% towards GDP, the prospects for an immediate economic revival are slim and if the root causes of the problems are not addressed the chances of more unrest are very real, said businessman and economic expert professor Bonke Dumisa.

“The cost to human life has been great. Now we also have the threat of a second wave of riots if we do not find lasting solutions. We must not hold our breath for government assistance. The coffers are empty. There was a clear lack of political and security will to minimise the destruction. Many political leaders and some within our security agencies went Awol. Business and investors want political and economic certainty, and right now we don’t have it,” he said.

“We must expect people to pack their bags and leave KwaZulu-Natal for Cape Town or close shop altogether and emigrate. I heard of a company that lost R600m. The owner said he will be packing up and leaving SA once the insurance payout is received.”

Michel Aronoff’s family immigrated from the Democratic Republic of the Congo in search of a better life in SA. Their business premises was looted and then gutted with petrol bombs. “After the first round of looting and petrol bombing of our warehouses, they returned to remove all of the piping. We also had one of our Baby City stores at Springfield completely looted. I will be meeting with the insurance company this week and will have to decide on the way forward,” he said.

Solly Suleman is the owner of the Sparksport Pharmacy group and president of the Minara Chamber of Business. He said he knows of at least 100 pharmacies that were affected and some may not be able to reopen.

“People have lost their livelihoods and their lifetime’s earnings. There has to be a commitment by the government and more especially the security cluster to protect business owners. We cannot survive another attack. In communities across KwaZulu-Natal and across all race groups, security is a priority and owners and residents alike will protect themselves if the government can’t. People don’t feel safe and many are talking of leaving.”

Private security companies told Business Day that as reports come in, they now know this was a well-planned execution. Many told of looters arriving in flatbed trucks, followed by groups armed with 5l canisters and bottles to petrol-bomb the premises. At some burnt-out premises there was evidence of unused petrol bombs outside.

Nomfundo Mcoyi, group CEO of Icebolethu Funeral Group, said of her 80 branches in KwaZulu-Natal, 22 were looted. “Most of our outlets were in big business centres. Furniture was stolen, desks and even caskets. We had to delay burying the dead, and grieving families had to wait until it was safe. The losses run into millions. If we did not have the other branches being spared, we would have been left with nothing.”

WE MUST EXPECT PEOPLE TO PACK THEIR BAGS AND LEAVE KWAZULUNATAL FOR CAPE TOWN OR CLOSE SHOP ALTOGETHER

Those business owners who escaped the destruction say it is thanks to quick responses from communities and private sector security. Simona Mugnai owns a sports clothing manufacturing factory in Verulam. “There was no police on the ground. It was the community that came to our rescue. With the barricades and warding off of looting mobs, our business was spared. But the extent of this mayhem will only be quantified later.”

In Pietermaritzburg, the legislative and trade nucleus, the figures reflecting destruction are catastrophic. Pietermaritzburg & Midlands Chamber of Business CEO Melanie Veness believes the economic prognosis is poor and that it will take between 15 and 20 years to recover.

In Pietermaritzburg the looting and destruction affected businesses of all sizes while help from the municipality has been non-existent as it is under administration.

A survey by the KwaZuluNatal Agricultural Union estimates that the unrest demolished 55% of economic activity in rural towns 64% of rural towns are experiencing severe food shortages, 32% moderate food shortages, with only 4% reporting a relatively secure food supply.