Economic impacts still being felt following civil unrest and riots

 Economic impacts still being felt following civil unrest and riots

Economic impacts still being felt following civil unrest and riots.

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Overview

A week after South Africa, especially KwaZulu Natal and Gauteng, experienced deadly riots, the financial implications have finally been calculated. In these two provinces, there were 200 malls targeted, with 3 000 shops looted during the protests.

The largest retailers which were implicated, according to statistics, are:


-Pepkor – 489
-Foschini – 190
-Spar – 184
-Shoprite – 154
-Pick ‘n Pay – 136
-Mr Price – 109

These are but a few stores that reported vandalization, looting, or other damage and the numbers are only of main retail chains, with other distribution centres in the affected areas having felt the impact of the riots.

The impact of deadly riots is still being felt in South Africa

The total cost of the riots, which started as result of the arrest and imprisonment of the former South African president Jacob Zuma, amounted to R50 billion in lost output and there have been more than 150 000 jobs which have been placed at risk, according to the South African Presidency, which cited estimates from the South African Property Owners Association.

Even though the companies and stores affected by the riots have worked tirelessly to restock their shelves, South Africans are still facing long hours in queues to obtain basic staples, resulting in food shortages in both KwaZulu Natal and parts of Gauteng.

One of the largest food producers in South Africa, Tiger Brands, reported that it had lost stock to the value of R150 million during the looting while Mr Price Group reported that its 109 affected stores had been cleared out completely, with others having to close as pre-emptive measures to prevent attempts at looting.

While South Africa works to rebuild what had been destroyed and lost, there have been millions of people showing much needed support by using hashtags #prayforsouthafrica and #savesouthafrica, amidst several others, across popular social media platforms such as Facebook, Twitter, TikTok, Reddit, Imgur, Instagram, and others.

Liezel Thorne

Liezel is a content writer with a passion for writing about the financial industry and corresponding markets. Her favorite topics include Forex, Stocks and Indices, Cryptocurrencies, and anything relating to trading technology – news, newest and latest tips, tricks, and trends. She has done extensive reviews on brokers, trading platforms (web, desktop, and mobile), and various other concepts involved with trading. As a student of Environmental management, she has a keen interest in geography, environmentalism as well as conservation of both fauna and flora.

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