KZN businesses still picking up the pieces, three years after July 2021 unrest
In July 2021, the world watched in horror as crowds went on rampage, looting shops and destroying shopping malls, pharmacies and various businesses over 10 days — all sparked by the imprisonment of former president, Jacob Zuma.
Zuma had been found guilty of contempt of court after he failed to appear before the Zondo Commission.
More than 200 shopping centres were looted across KwaZulu-Natal and in parts of Gauteng, and according to a report by the South African Human Rights Commission (SAHRC), and 350 people lost their lives.
SAHRC commissioner, Philile Ntuli said a myriad of factors contributed to the destruction and violence during the riots.
“The violence and destruction were symptomatic of unresolved systemic conditions, including post-Covid-19 economic recovery, high unemployment, lawlessness, discrimination, socio-economic divides, and issues within the security sector,” she said.
Ntuli added that the commission concluded that organised groups and individuals opportunistically exploited these conditions to attempt to usurp the rule of law.
To date, more than 60 people have been arrested for their alleged involvement in the unrest.
In November last year, Mdumiseni Khetha Zuma was sentenced to 12 years imprisonment for inciting people to gather and commit public violence at the Brookside Mall. The mall was razed to the ground.
Last year, it was reported that the South African Special Risk Insurance Association (Sasria) had paid out over R32 billion in the wake of the 2021 riots.
According to the Institute for Security Studies's Willem Els, more needs to be done to hold people behind the unrest responsible.
He said the country's security agencies lacked planning and this led to the unrest spiralling out of control.
Speaking to Jacaranda FM, Els said police were unprepared and understaffed.
Impact on business
The unrest had a massive impact on both big and small businesses.
Speaking to IOL, Durban Chamber of Commerce and Industry CEO, Palesa Phili, said the unprecedented event derailed many businesses across all economic sectors.
She said many businesses were affected negatively, resulting in a negative impact on our economy.
“Furthermore, several businesses in our small and medium-sized enterprises sector have been shut down, with little or no hope of them ever opening their doors,” she said.
Phili said based on their observation, some businesses have rebuilt and resumed operations.
“Following engagements with private sector, we believe business leaders are committed to rebuilding their operations in Durban. We have worked closely with government to ensure adequate support is given to private sector to fast track the rebuilding process,” she said.
Phili said the chamber remained optimistic that KZN's economy is on the road to recovery.
Loss of investment
Chairperson of Association of South African Chambers (ASAC)and CEO of Pietermaritzburg & Midlands Chamber of Business (PMCB), Melanie Veness, added that a lot of investment [from KZN] has been lost to other provinces, especially concerning warehousing.
"A number of businesses have opened and others have been liquidated. It was too difficult to recover. Those that took time to rebuild are struggling to recover their market share, as customers have established new supplier relationships in the interim," she said.
Veness said smaller businesses were particularly affected as many were uninsured and have struggled to re-establish themselves.
The chambers have set up programmes to help replace stock items and have included a number of these businesses in development support programmes post the unrest.
Veness said they have been disappointed that there has been so little accountability so far, given the magnitude of what occurred and the amount of lives and livelihoods that were affected or damaged.
“It’s completely unacceptable. We know that there have been arrests of some of the instigators, but there are continuous delays and they’re yet to face trial,” she said.
“Government still hasn’t named the masterminds. They need to do this, it’s critical and they need to make them account. South Africans need to look them in the eyes and see them face justice.”
She added that the province and country have suffered serious reputational damage.
“Our province will continue to be seen as unstable and volatile until there is accountability. We in KZN will never realise our economic potential if there is no accountability,” Veness said.
Lessons to be learnt:
– Law enforcement taking a more proactive approach.
– Government needs to work with the business community to ensure safety and security is a priority.
– Resources need to be mobilised to support intelligence gathering.
– Improvement in the efficiency and effectiveness of SA Police Service (SAPS) and Metro Police.
– Full coverage of KZN geographical space especially the hotspots through visibility responses and decisiveness from SAPS and Metro Police.
– SAPS and Metro Police to engage in ‘zero tolerance’ policing strategies.
– Mobilisation of community support through community policing forums.
IOL News