DURBAN - THE Department of Trade, Industry and Competition (DTIC) has budgeted a R3.75-billion package for the restoration of businesses affected during the looting and unrest that took place in KwaZulu-Natal and Gauteng in July.
Labour minister Thulas Nxesi has committed to assisting affected workers and industries. Accompanied by Amajuba District mayor Dr Musa Ngubane, deputy director-general for Public Employment Services Sam Morotoba and acting commissioner for the Unemployment Insurance Fund advocate Mzie Yawa, Nxesi spoke with workers on Tuesday during an inspection visit to Newcastle, KZN.
The department outlined interventions and how it was assisting affected workers across the province. The department is collating all the necessary workers’ information so they can benefit from both the UIF and Public Employment Services work-seekers database for re-employment when the Theku shopping plaza resumes its operations in the near future.
The Theku Plaza operations manager estimated that about 1 800 workers had lost their jobs as a result of the looting, with billions of rands worth of investment lost since the subsequent closure of Theku Plaza.
Nxesi also visited the Madadeni business zone, pausing at a textile industry where he encouraged employers to access the South African Special Risk Insurance Association, and urged them to apply for Reduced Work Benefit from the department’s Beneficiary Service.
DTIC Minister Ebrahim Patel said affected businesses could apply.
“The DTIC and its Development Finance Institutions, the Industrial Development Corporation (IDC) and the National Empowerment Fund (NEF) have collectively put together a funding package in support of various business recovery interventions,” Patel said.
Affected companies will have access to the “industrial loan support” at a zero percent interest rate towards the rebuilding of infrastructure, including equipment, fittings for the premises, stock and working capital.
Part of the economic rebuilding package is a comprehensive package by the IDC that offers funding support for businesses and communities affected by the unrest of up to R1.5bn.
This includes a R100-million matching grant facility to support small and informal businesses in the townships, rural areas and in small towns affected by the unrest.
Patel said R400 million had been set aside under the Manufacturing Competitiveness Enhancement Programme (MCEP) Economic Stabilisation Fund.
The fund will support manufacturing companies and related services affected by the unrest, including those impacted by associated supply chain disruptions, Patel said. Part of the benefits include concessionary funding to affected firms through interest-free loans to preserve and grow jobs, as well as value chain restoration.
Daily News