July 2021 riots’ devastating effects on the economy still being felt
Durban – The founder and director of the social enterprise organisation Township Fleva, Gail Sham, has said that the country and its people are still reeling from the devastating, long-lasting effects of the July 2021 riots, and said that this proved burning and looting is not a solution to our social problems.
Sham said that despite these difficulties, South Africa again experienced an eerie sense of déjà vu this month, July 2023, when the country again plunged into torching trucks in an apparent spate of organised arson attacks.
Township Fleva highlighted the rebuilding and recovery efforts, and said that through integrated interventions by the government, the private and non-profit sectors can play a crucial role in mitigating the long-term effects of the 2021 events on the economy.
“Destroying property and compromising security has not paid off for vulnerable communities who did so in the name of political expression,” the community development organisation said, after two years of helping small businesses recover from the July 2021 riots.
“Affected families, business owners, traders, and workers in townships in KwaZulu-Natal, Gauteng and other parts of the country are still dealing with the aftermath of the widespread looting and riots, which continues to have significant negative consequences on the economy and country two years later.
“The country again plunged into a horrifying sense of déjà vu, this month, July 2023, when at least 21 trucks containing commercial goods around the country were torched in an apparent spate of organised arson attacks.
“Like the events of July 2021 which also involved the burning and destroying of commercial property, these attacks coincided with high- stakes judicial action against former president Jacob Zuma, and the deployment of soldiers was necessitated by security threats. This eerie repetition of history understandably put South Africa's political and economic stability into question, a harsh spotlight the country cannot afford,” Sham said.
Township Fleva, which funds and runs township development programmes, reflected on July 2021 as a time that led to the loss of 354 lives and cost the economy more than R50 billion and 150 000 job losses.
“As we offer support to the families who are still seeking justice for the loss of lives and livelihoods during the deadly and chaotic unrest, we emphasise that rebuilding and recovery efforts through integrated interventions by government, the private and non-profit sectors will play a crucial role in mitigating the long-term effects of the events on the economy.
“The overall economic impact of the July 2021 riots is complex, and it may take a few more years to fully measure. These destabilising events also negatively impacted foreign investment and domestic investor confidence in South Africa,” said Township Fleva co-founder Alef Meulenberg.
“Political and social unrest, coupled with the destruction and looting raised concerns about the country’s stability and security, potentially deterring foreign direct investment. If the conditions that created those events persist, encouraging confidence in our economy will continue to be an obstacle and this could hinder future economic growth and development,” Meulenberg added.
“Rather than having their vulnerability used against them to engage in activism that does not promote development, communities should be encouraged to be active members of their communities by helping to protect small businesses and any operations that bring jobs and economic activity to their communities.
“This is one of the most important lessons we should take away from the aftermath of the July riots. The people who succeeded in rebuilding and restoring their trades, saving jobs and restoring order were those who actively sought ways to unify towards a common goal steering their communities toward growth and security,” Meulenberg said.
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