Business Unity SA (Busa), which says it believes the damage done over the past week to businesses and infrastructure to be in the region of R10bn-R12bn, says the government’s response so far has been inadequate and a much bigger security effort is required.
This should include a 24-hour curfew in affected hotspots to restore order and allow the security forces to regain control. It has also urged the government to secure the N3 between Durban and Johannesburg to enable food, fuel and medicines to move again.
The route has been partially or fully closed for four days.
President Cyril Ramaphosa should use the full might of the power and resources at his disposal and ensure that the entire the government gets behind this effort, says Busa.
“We call on the president to be present through regular addresses to the nation to instil confidence and demonstrate government cares about their security,” Busa said.
Busa has been appealing to the government since last Friday to provide troops to protect infrastructure like shopping malls, but the government has been reluctant to do so.
After a refusal on Friday on grounds that it was not the role of troops to protect private property, Ramaphosa eventually announced the deployment of 2,500 troops on Monday. After more pressure from business this was eventually increased to 25,000 on Wednesday.
As well as the curfew — which would confine people in hotspots in KwaZulu-Natal and Gauteng to their homes for as long as necessary — Busa has called on the government to allocate emergency funds to call up all army reservists nationally and police reservists in KwaZulu-Natal.
Without a blanket curfew in hotspots, essential goods like food will not be able to move into the affected areas, it said.
“This is an emergency unparalleled in our democratic history and requires the state to take immediate action.
“Without clear and dramatic interventions, contagion will continue. We are concerned state action to date has been inadequate,” the business organisation said in a statement.
Food producers, who met urgently with trade, industry & competition minister Ebrahim Patel and agriculture minister Thoko Didiza, and others have also appealed to the government to secure the N3 urgently.
Didiza said food supplies nationally are “sufficient” and supply chains in KwaZulu-Natal are receiving “urgent attention”.
Busa, which represents most companies in the formal sector, also wants to see the establishment of a disaster relief fund to assist affected businesses as well as “a complete reassessment” of government spending in the context of the emergence of new priorities within the context of limited fiscal space.
This could also involve additional borrowing by the government to meet some of the immediate needs, said Busa vice-president Martin Kingston.
Discussions are under way in the National Economic Development and Labour Council on the establishment of a disaster relief fund.
Busa said it is concerned that state-owned special risk insurer Sasria will not have sufficient resources to settle all claims.
As settlement of claims will also take some time “there is a need for a proper, capitalised dedicated resource to respond now”, said Kingston.
Sasria has so far estimated the value of the damages to be R10bn-R12bn.
Busa is also concerned about the amendment to the state of disaster regulations gazetted on Wednesday, which enable political gatherings to be held. This should be reversed and the restriction on gatherings enforced, in the interests of public health to contain Covid-19.
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