Africa-Press – South-Africa. The Industrial Development Corporation (IDC) said its Post Unrest Business Recovery Fund had sustained 30 000 jobs as businesses impacted by July’s civil and social unrest began operating again.
The unrest which led to extensive looting and destruction of businesses and property in Gauteng and KZN impacted the retail, manufacturing and agricultural sectors among others.
Almost five months after the unrest, many employees who were facing a bleak festive period were said to have reclaimed their jobs.
IDC chief executive Tshokolo Petrus Nchocho said the impact of this unrest to the national economy was significant given the strategic importance of Gauteng and KZN as SA’s key manufacturing hubs.
“And this was telling of the disruption to the supply chain, ” Nchocho said, adding that the funding interventions and funding packages that the IDC devised were “precisely aimed at helping these businesses to return to operation and help restore the supply chain.”
One of the beneficiaries was clothing manufacturing giant Kingsgate whose four business sites were severely affected by the unrest.
The IDC provided funding to restore Kingsgate’s operations at all four business sites. The business has over 770 employees. The loss of jobs would not only have impacted workers but also their dependents.
Trade Call Investments, an apparel design, manufacturer, and supplier was also impacted by the looting and was a beneficiary of the IDC Fund. Post the unrest, its factory in Mobeni north of Durban went out of operation impacting close to 120 employees. It’s other manufacturing factory in Ladysmith employing close to 1 100 employees faced disruption in the supply of raw materials. In addition to these challenges, Trade Call’s stock consisting of cutting-edge electronics valued at close to R120 million was damaged during the looting.
Nchocho said most families were battling the impact of COVID-19 while some had lost jobs as a result of the pandemic and in the midst of the crisis, the country had to endure the challenges that resulted from the civil unrest.
Heartlands Foods, a KZN based food manufacturer employing about 336 staff was another beneficiary of the IDC’s Post Unrest Business Recovery fund. Its factory was torched during the unrest resulting in extensive damage to the building, plant machinery and stock.
“For us as the IDC, we are happy that our funding intervention helped to restore these businesses to pre-unrest levels, and more than 30 000 South African families will celebrate the festive with good cheer and relief,” Nchocho said.
During a NCOP Finance presentation by the National Treasury and PBO in August this year, it was said that the negative impact of the unrest would likely last beyond this year.
BUSINESS REPORT
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