Unrest latest: SA’s economy ‘likely’ to recover in 2023

Finance Minister Tito Mboweni says the National Treasury now predicts that the South African economy will return to pre-COVID levels only in 2023.

Mboweni held a media briefing on Wednesday on government’s Economic Support Package in response to the impact of COVID-19 restrictions and the recent violent unrest in Gauteng and KwaZulu-Natal that saw businesses gutted and looted.

SA’s ECONOMY LIKELY TO RECOVER AFTER 2 YEARS

Mboweni said that the National Treasury now projects that we will only be able to go back to the pre COVID growth situation only in about 2023.

“The recent disturbances and unrest in both Kwazulu-Natal and Gauteng, but also in other parts of the country on a smaller scale, have had a major impact on our economy. This has impacted very negatively to our economic recovery trajectory,” he said.

“As emphasised by the president, no matter how upset we might be about one or the other, the destruction of infrastructure that belongs to all of us is really unacceptable,” he added.

During the chaos and looting that claimed over 330 lives three weeks ago, shops, malls, network towers, post offices, factories, roads, and freight trains among others were destroyed.

KwaZulu-Natal (KZN) Premier, Sihle Zikalala has said that research done by the KZN Agricultural Union (KWANALU) indicates that 64% of rural towns are already experiencing severe food shortages as a result of the recent riots and unrest.

Zikalala said in the latest assessments eThekwini Metro and Umsunduzi municipalities remain the hardest hit. They estimate that the unrest will affect eThekwini in the following manner:

• Loss of stock of more than R1.5 billion;
• Damage to property and equipment of more than R15 billion;
• Over 50 000 Informal Traders affected;
• Over 40 000 businesses affected;
• More than 150 000 jobs are now at risk.
• Preliminary estimates suggest that the impact on the eThekwini GDP will be about R20 billion.

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