Many small businesses may never recover, which will lead to job losses, and increased poverty, which in turn could lead to more violence.
Ndofaya Mall in Meadowlands, Soweto is seen during a clean-up operation, 20 July 2021, after rampant looting last week. Ten people died in a stampede at the shopping centre. Picture: Michel Bega
The Non-profit company and other experts suggest these events have exposed how vulnerable small businesses are to volatility, despite being the backbone of employment in South Africa. It is estimated that 72% of businesses affected by the looting sprees in early July fall in the category of small and micro enterprises, including informal traders.
The company is embarking on emergency measures to help such businesses with cash injections and other resources. The report on the survey will be released later this week, but early indications are that cash injections, infrastructure and services are among the most immediate needs for most affected enterprises to get back on their feet.
“Property damages and stock losses have resulted in businesses halting their activities until properties are restored and stock is replenished. There is still an issue on insurance claims, whether insurance companies or the South African Special Risks Insurance Association is responsible,” she remarks.“We need to also bear in mind that a lot of small businesses did not have insurance, they thus have to rely on their savings to recover, and this might not be possible.
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