Violent unrest and looting has rocked KwaZulu-Natal since former president Jacob Zuma turned himself over to police to serve a 15-month prison sentence for contempt of court.
From stores being completely looted to factories and cane fields being set alight, businesses have started counting the cost of the damage wreaked through civil unrest in parts of the country. As businesses continue to assess the damage, more than 700 looters were arrested. Market observers have warned that the volatile situation may lead to a breakdown in supply chains, leading to food insecurity as some customers go on panic buying amid the emptying of shelves during the unrest. Newcastle Municipality Mayor, Dr Ntuthuko Mahlaba, together with the KwaZulu-Natal legislature continues to engage businesses affected by the looting in Madadeni, Osizweni, Utrecht, Theku Plaza and Mdozo. On 16 July, the mayor joined a delegation from the KZN legislature led by the honourable Phumzile Mbatha Cele, together with Deputy Mayor, Reuben Molelekoa, the District Mayor of the Amajuba Municipality, Speaker of the Amajuba District Municipality and the Mayor of Emadlangeni Municipality. The purpose of the visit was to further assess the extent of the damage as a result of the looting.
“We began our fact-finding mission with a key stakeholder meeting with the regional security cluster which included the South African Police Services and the Municipal Traffic Unit, business organisations and the Newcastle Growth Coalition. The discussions were centred around establishing the course of the recent looting, the role of government and recommendations,” said Mahlaba. With over 40 shops in Madadeni, Osizweni, Blaawbosch, Theku Plaza and Mdozo having been ransacked and looted, the estimated damage is said to cost businesses over R200 million with over 5 000 direct and indirect lob losses with the biggest loss being seen in the Madadeni industrial factories where over 3 000 jobs and millions of rands in goods have been lost.
The mayor further expressed his sadness at the current situation. “I am saddened to report that the textile industry in Newcastle will suffer a major setback, as it was beginning to show signs of recovery since the start of the Covid-19 pandemic. I have interacted with the owners of the factories and have committed to exhaust all avenues in the form of facilitating assistance from both government and the private sector. I have also assured factory owners that as a government our main priority is to safeguard jobs, boost investor confidence and strengthen work relations between the factories and the municipality,” said Mahlaba. He reiterated that the immediate goal and plan of action includes meeting with the Chinese Chamber of Commerce as soon as possible.
The local brewery (SAB) which is situated in Madadeni, also fell victim to the tyrant of looters. The business is also a key employment driver within Newcastle, and potentially would have seen more employed. I witnessed operating trucks torched and the entire business brought to the ground. The Madadeni Boxter centre, Shoprite store and the Eyethu Mall were also torched and looted. The mayor also appealed to members of the community to report any stolen goods to law enforcement agencies. “Let us also restore our moral fibre which has been eroded by a select few. The negative impact of the looting has led to widespread job losses at an unimaginable scale. As municipality, we will also assist some businesses with their clean-up programmes. The priority at hand is to see businesses operating again, for businesses to thrive and for the economy of Newcastle to grow,” said Mahlaba. The mayor made it clear that no excuses will be able to justify the recent looting in Newcastle, however, he felt great comfort to know that the resilient businessmen and businesswomen will rise above the unfortunate set back. “The South African National Defence Force has already been deployed in Newcastle to closely monitor the situation and work with the SAPS in recovering the stolen goods. I also send words of gratitude to the many dedicated members of the community who are patrolling and protecting the remaining malls in Newcastle,” said Mahlaba.
