Two weeks have come and gone and the impact of the shutdown riots has lingered on.
Last week, suspected instigator of the unrest that crippled economies in KwaZulu-Natal (KZN) and Gauteng, Ngizwe Mchunu, was released on bail, much to the opposition of the state, a man viewed as a high-risk respondent with access to a private jet and an active United States passport.
UnrestSA: Economy still reels from looting
With investigations ongoing into uncovering criminal elements in what President Cyril Ramaphosa has termed an ‘insurrection’, the government has begun the process of intervening with recovery efforts at economic hubs impacted by the wide scale looting.
Restoring more than 1 000 businesses that were affected by the shutdown riots will cost more than R1 billion. These were the other statistics released by the Justice, Crime Prevention and Security (JCPS) Cluster in late July:
- 757 suspected charged with crimes related to the shutdown riots
- At least 32 people reportedly died from the public violence
- More than 1 000 businesses looted and destroyed
“The violence and destruction of the last two weeks has provided the starkest reminder of what is at stake. It has exposed several of the social and economic faultlines in our society and underlined the urgent need to decisively address poverty, inequality and unemployment,” Ramaphosa said in his address on the state of economic security.
How government is helping businesses affected by shutdown riots
The departments of Small Businesses and Trade and Industry has stepped forward with funds redirected towards affected hubs in both provinces.
- R1 billion has been redirected from other programmes to support affected businesses in KZN and Gauteng
- The National Empowerment Fund (NEF) has allocated R200 million to support businesses in rebuilding efforts
- Government economic package will prioritise local suppliers
- InvestSA is reorganising its work to prioritise businesses that were affected by the riots
Businesses that were affected by the shutdown riots are encouraged to contact the recently set up Economic Recovery Hotline.