South Africa loses business confidence and access to key trade routes after days of chaotic violence following former president Jacob Zuma's imprisonment
Daily protests in KwaZulu, Natal province have turned violent following the imprisonment of former South African President Jacob Zuma. The arrest sparked several days of civil unrest, including protests, arson, and the looting of businesses.
Massive food shortages are reported to be the result of rioters looting supermarkets and setting fire to trucks carrying supplies.Tiger Brand, one of the country's largest food manufacturers, has had its business operations severely affected as a direct result of the civil war. [Businesstech].
In a statement today (July 15), the group said: Loss of profits due to business interruption is still being quantified. The situation in KZN remains volatile, posing further risks to other Tiger brand facilities in the region. ”
The group has since ceased operations, including bread distribution and delivery to KZN and store closures. This comes after a risk assessment concluded it was “prudent” to suspend operations. The brand has told shareholders that the move also provides adequate insurance cover.
Shopping malls and stores have been set on fire, and many businesses have been forced to close. iAfrica said the closure was due to fear of attack, as well as to ensure the safety of employees who were unable to go to work due to protesters blocking access to the community.
This will be a blow to businesses that are recovering from the pandemic and rely on in-person activities.
The Telegraph reported that more than 35 trucks were burned or damaged on the roads by the time they reached the rest of the continent. The N3 motorway, a busy trade route between Sidara and Harrismith, is currently closed as a precautionary measure. The closure threatens to cut off supplies of essential goods such as food and medicine.
N3 Toll Route Update tweeted: The #N3TollRoute between #Cedara and #Harrismith is closed to all traffic until further notice due to #safety and #security. Avoid traveling to this area.
The country's Road Freight Association warned that the N3 closure could cost billions of dollars and even drive countries away from South Africa as a trading hub if the disruption continues to spread.
The significant destruction of property has led to loss of income and delayed hopes of rebuilding South Africa's economy post-pandemic.
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