DURBAN - FINANCE and Economic Development MEC Ravi Pillay on Monday revealed that R4 billion had been set aside to assist uninsured small, medium and micro enterprises (SMMEs) rebuild businesses destroyed during the recent unrest.
Pillay was speaking during an Ithala Bank Masakhe Stakeholder Engagement webinar which provided details of the rebuilding efforts in partnership with all stakeholders including the government.
“Bigger businesses have insurance, so we have requested that claims processing be given key priority.”
The MEC called on banks to assist with bridging finance.
He said they were in talks with the national government to get them to intervene.
“We want to reassure investors that we have stabilised. We are looking to attract more investors, and Premier Sihle Zikalala is leading that delegation.
“We have made pleas to Ithala to cut the red tape. Ithala is our implementing partner in most projects especially in townships and rural areas,” said Pillay. Further, they wanted stakeholder engagement to be cascaded down to the district level and down to each community.
“Fifty-eight percent of the unrest impact was in Durban, while 17% was in Pietermaritzburg. Other areas were also badly hit, including small towns.”
Ithala chief executive Pearl Bhengu said the unrest had a hugely negative impact on Ithala properties and its business clients throughout the province estimated to be in the billions.
“Some businesses have been forced to close and stop operating. In a large number of them, stock was lost or damaged.”
Bhengu said Ithala was committed to assisting stakeholders. “As a state-owned entity, we take seriously the call by the government to empower the people of the province, especially during these tough economic times.”
She detailed the impact of the unrest on the industrial parks.
“The total impact to properties was severe. An estimated 6 785 jobs were affected. There was R145m revenue loss for Ithala as a result of the unrest. An estimated cost of R527m for rebuilding. Over 300 tenants were affected, while 427 factories and shops were either burnt down or damaged.”
She said 14 of their clients’ businesses were impacted, which had affected their ability to meet loan repayment terms.
“As KwaZulu-Natal’s provincial development agency, the Ithala Development Finance Corporation strives to extend a helping hand to the people of KZN and our valued clients during these distressed times, rather than sit back and watch the businesses they worked so hard to acquire and grow diminish before their eyes.”
Ithala’s board chairperson, Roshan Morar, said: “We are working collaboratively with our shareholder, civil society, and the private and public sector on projects aligned to our mandate. We are continuing to engage with various stakeholders to find solutions, build a favourable and conducive environment … to rebuild the KZN economy.”
Department of Trade, Industry and Competition chief operations officer Stieneke Jansen said developmental finance agencies should continue to work diligently and tirelessly to promote investment and sustainability.
“Several local and surrounding communities across KZN are highly dependent on the existence of purpose-built industrial estates for employment, income and an improved lifestyle,” Jansen said.
Daily News