South Africa: The Good Of Critical Race Theory When Your Country Is Being Looted

[G.L.R.]

S. Africa: Violence affected staggering 45,000 businesses! – Riots calm but the devastation remains – businesses count the cost

19th July 2021

The riots and widespread looting  that took the country by storm over the past week or so has been  another headwind to corporate South Africa, which is still struggling to  get back on its feet after the effects of the various lockdowns  implemented to curb the spread of Covid-19. JSE-listed companies make up  a trivial percentage of the total businesses in South Africa with an  estimated 45,000 small businesses affected as a result of the blatant  disregard for law and order. The sad reality is that many of the smaller  businesses won't be able to make it back as the larger peers with  bigger pockets are able to weather the storm.

Look familiar?

Other than property counters in the effected areas, food and  discretionary retailers have been largely ravaged. Although the big  four  food retailers – that being Shoprite, Pick n Pay, Spar and Woolworths -  have yet to communicate with investors, one would assume the damages  and looting goes into the hundreds of millions given the widespread  thievery which has been evidenced by videos circling on social media.  Discretionary retailer Mr Price has confirmed 109 stores have been completely wiped out  whilst food producer Tiger Brands estimates the costs of the loss of  inventory and damage to property to be around R150m.

Reminds you of America

Despite the more  obvious effected sectors, supply chains and  logistics focused businesses have also suffered as a result of the  disruptions. The N3, which was closed for much of this week as a result  of the protests, is a key trade route between Johannesburg and Durban. This will cause knock on effects, which could result in food and fuel shortages in parts of South Africa.

The police always arrive after the destruction

The disruptions couldn't have come at a worse time for corporate  South Africa which is still battling from a 7% reduction in GDP in 2020.  This weeks disruptions are expected to reduce GDP by 0.4% this year, a figure which was recently revised upwards from 3% to 4% by the World Bank.  Many businesses, small and large, will be without an income for a  prolonged period of time during the rebuilding phase. And for many  businesses this will be the final straw. Unemployment will continue to  rise and the inequality challenges that South Africa has faced since  democracy will worsen.

S.Africa: Violence affected staggering 45,000 businesses! – Riots calm but the devastation remains – businesse s count the cost – History Reviewed