Riots, looting 'final nail' in economic coffin
As the looting of shops continues unabated, an economist believes it will be the final nail in the coffin of an already dying economy.
The unrest that began in KwaZulu-Natal late last week has spread to other parts of the province and Gauteng.
A number of businesses have been targeted in Durban, Pietermaritzburg, Soweto and Alexandra, among others.
The army was deployed to affected areas on Monday and soldiers are already on the streets of Pietermaritzburg.
Economist Mike Schussler says the looting is a big knock to many industries and small businesses that are still suffering the losses of lockdown.
"What we will see is a lot less business confidence, a lot less investment into the country until this situation is far behind us. The problem at the moment is that I think people are worried.
"I think it will impact the economy, everything from car sales to home sales because that's where you need the confidence. We are already in a lockdown level 4, which impacts other industries such as restaurants and the liquor industry. So this just adds to our troubles."
Freight groups have also warned if the violence in parts of the country doesn’t end, the economy will suffer.
Nearly two dozen trucks have been torched on major routes over the last few days.
The Road Freight Association's Gavin Kelly says there will be serious consequences.
"Those people who move goods along the N3 or N2 that are going through KZN might decide to use a different route which could be longer, could be more expensive or they will just decide to stop operations, so those communities, towns and cities that could have got goods will mo longer receive goods and the factories will no longer be able to their raw materials in. So there can be a huge impact on the whole economy if this isn't sorted out immediately."
