Massmart, like other retailers, has been affected by the recent looting, mainly in KwaZulu-Natal and parts of Gauteng. We have now shifted our focus to recover, rebuild and reopen our affected stores and facilities. We are very determined to emerge stronger out of this.
The wanton destruction of property and loss of over 200 lives have been a huge setback in SA's economic growth- and job-creation projects. Business Unity SA estimates that it is likely to take 12 to 18 months to recover from the damage caused by the looting. What is unknown is how long it will take to regain the confidence of local and foreign investors.
More concerted and joined-up action is required to expedite the recovery and rebuilding projects. It requires a whole-of- society approach more than ever before. The government needs to double down on structural reforms to create a conducive environment for business to invest in job- rich and growth-enhancing projects.
The recent bold action to liberalise the renewable energy market by allowing the private sector to produce up to 100MW of electricity was very positive for investor sentiment. More similar interventions are required from the government as we now face the twin challenges of recovery from the damage caused by the Covid pandemic and the tsunami of looting that ravaged KwaZulu-Natal and parts of Gauteng.
Now is the time for business and the government to sing from the same hymn sheet in positioning SA as a country that is not just open for business but also safe for local and international investors alike.
This requires honesty and transparency about the problems and challenges we face as a nation and a clear articulation of our determination and commitment to effectively address them. It also requires concrete and visible steps to take bold and decisive action to move the country forward.
The legacy issues of a rigid labour market regime, talent shortage, visa processing, energy and water insecurity as well as a lack of productivity in some of our sectors need to be addressed with a sense of urgency. The big elephants in the room are the high levels of poverty, inequality and unemployment (especially youth unemployment), which require targeted and focused policies and actions to be implemented.
I fully support the call for a universal income grant to assist the poor and unemployed while work is being done to create jobs that will integrate them into the mainstream economy. Poverty and unemployment, if unattended, remain a serious and real threat to peace, stability and social cohesion.
We need to build an inclusive and decent society based on a visible, felt and strong sense of social solidarity. This can best be achieved in a growing economy that creates decent jobs for all who are part of the economically active population.
That is why every aspect of policy in the economic cluster ministries must be directed at creating and advancing economic growth and job creation. This has to be embedded in the performance contracts of all ministers in the economic cluster, who must be held accountable for economic growth, job creation and investment.
The public needs to be given regular updates on these key issues as they impact on them. Trade unions also have a part to play to advance the growth and job-creation projects which benefit them too.
They need to be part of the solution; not the problem. But how?
First, labour can and must be an active partner in championing growth and job-creation initiatives. Economic growth is key to job creation. The key here is promoting job-rich growth as it is possible to have growth with minimal job creation.
Second, labour can and must partner with business and the government to promote productivity. This requires a commitment to up-skill and multi-skill the workforce and embrace world-class ways of working. Productive labour markets are very conducive to attracting and retaining domestic and foreign investors alike.
Third, labour can and must work with business and the government to build consensus on minimum and living wages that are conducive to growth and job creation. This is key to securing a stable, constructive and positive industrial relations climate, which is key to productivity and world-class production.
What should be the role of business? First, business has a key role in helping SA build back better from the ashes of Covid-19 and the looting sprees that have destroyed lives, livelihoods, jobs and economic growth. Business must not give up on SA. The country can and will emerge stronger if the private sector invests more, not less. Massive investment on a sustained basis is key to eradicating the high levels of poverty, inequality and unemployment that make people vulnerable to manipulation by opportunistic elements.
Second, the private sector needs to take the issue of building and supporting social cohesion more seriously than ever before. Social cohesion is very key to social and political stability, which in turn are key to a conducive investment climate.
It is in the enlightened self-interest of business to promote social cohesion initiatives that support national unity and reconciliation.
At Massmart we have made a clear commitment to restore damaged infrastructure and protect the jobs of our employees. We are prioritising reinstating and restocking those stores with least damage, and this process has already resulted in the safe and responsible reopening of some of our affected stores in KwaZulu-Natal, with more to follow.
We are also supporting our 7,000 associates (employees) in KZN with food hampers to address food insecurity. I am very proud that Massmart will continue to support and retain affected staff while we reinstate and rebuild our stores and facilities.
In addition to that, we are working with our NGO partners, Gift of the Givers and Food Forward, to distribute 90t of food to needy communities in the province. We are also assisting Food Forward to reinstate infrastructure that was damaged, with a view to not just recover but to permanently increase their food security distribution in the province.
We strongly believe that we will emerge stronger from this experience and remain resolute and determined to support the social and economic recovery of KwaZulu-Natal and SA at large.
• Dlamini is chair of Massmart
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