Treasury mulls further unrest relief
The Treasury is gathering data on all businesses affected by the unrest in KwaZulu-Natal and Gauteng in July to determine whether more support measures are necessary. A portal has been set up for businesses to register the details of the damage suffered and will be open until the end of September.
The Treasury is gathering data on all businesses affected by the unrest in KwaZulu-Natal and Gauteng in July to determine whether more support measures are necessary to help them rebuild.
A portal has been set up for businesses to register the details of the damage suffered during the unrest, including an estimate of the costs. All businesses affected in KwaZulu-Natal, Gauteng and other areas between July 9 and July 19 are encouraged to register with the portal that will be open until the end of September.
The aim is to determine whether national and provincial measures taken to help smalland medium-sized businesses are adequate. These were based on the R39bn relief package announced by President Cyril Ramaphosa on July 25.
“The registration portal will collect information from affected businesses to better co-ordinate relief measures as well as to inform future interventions,” the Treasury said in a statement.
Ismail Momoniat, deputy director-general of tax and financial sector policy at the Treasury, said in an interview with Newzroom Afrika that the aim of the portal is to determine the extent of the damage and losses, as well as the types of businesses affected.
He noted that many small businesses did not have insurance and the challenge is how to assist them. “We do need to ensure that the programmes of government reach out to those businesses and how we can improve the current support mechanisms,” Momoniat said.
Collecting the data would enable the Treasury to categorise the businesses affected and to better analyse the situation. It would also lead to better co-ordinated relief measures and inform future interventions.
“The problem we are trying to address is that we do have some support measures in place as government, but it has been really difficult to get to all the people and all the businesses that have suffered a problem. At the moment it is just very minimal information that we are requiring,” Momoniat said.
He emphasised that businesses insured by the stateowned SA Special Risks Insurance Association (Sasria), which provides cover for riots, strikes and other forms of civil commotion, must continue to submit their claims to the insurer.
Asked whether Sasria has sufficient funds, Momoniat reiterated the undertaking given by Ramaphosa that the government would stand by Sasria so it could pay all the claims of its clients. “Government will provide the financial support that is necessary to get Sasria to assist all their clients,” Momoniat said.
The government has already committed R3.9bn to Sasria but its MD, Cedric Masondo, has warned that a further R7.4bn will be necessary if claims — which already total about R20bn — reach R25bn. “I don’t think there needs to be any concern on the ability of Sasria to pay those who were insured with them,” Momoniat said.
Finance minister Enoch Godongwana has estimated that the damage caused by the looting and destruction of a range of businesses — including retail and liquor outlets, shopping malls, pharmacies and warehouses — could amount to as much as R50bn. The devastation has also had an effect on GDP growth, jobs and business confidence.