Capitec Bank has reassured its more than 15,000 employees that none of them will be laid off as a result of what is now known as the failed insurrection, which led to the temporary closure of 300 branches in the hotspots of KwaZulu-Natal and Gauteng.
“We are fortunate to be able to say that not one employee will be impacted from a job security or salary point of view because of this situation,” Capitec said in a statement on Friday.
“The employees affected by the closed branches will either be assigned to support neighbouring branches that remain open or will assist our client service team remotely.”
While the government has managed to restore law and order in the two affected provinces after a week of social unrest, the cost of damage to infrastructure, looting and lost sales by businesses is running into billions of rand, according to preliminary estimates.
While big and established businesses have insurance cover to mitigate the losses, small businesses may not be able to recover, implying that they could lay off staff, swelling the unemployment rate which is already at a record high.
Last week’s social unrest has dampened prospects of a quick recovery in the economy, which has been badly affected by the Covid-19 pandemic. In 2020 about 1.4-million jobs were lost as a result of the pandemic, pushing unemployment to a record high of 32.6% in the first quarter of 2021.
Capitec said the vandalised branches will be urgently repaired and automatic teller machines (ATMs) in the affected areas will not be supplied with cash, or accept deposits, until it is safe to do so. At least 1,400 ATMs were vandalised during the riots, according to the Banking Association SA, the body representing the banks.
“We encourage our clients to do their banking on their app, pay by card and, if needed, to draw cash at Shoprite, Checkers and Pick n Pay stores. Individual and business bank clients will be supported with the right credit treatments on a case-by-case basis,” Capitec said.
Capitec, which is the largest unsecured lender in SA, had 857 branches across SA and 15.829-million active clients, according to results for its full-year, which ended in February 2021.
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