Showing posts with label Johannesburg. Show all posts
Showing posts with label Johannesburg. Show all posts

Wednesday 14 July 2021

South Africa facing widespread social unrest

Widespread social unrest gripping South Africa following the arrest of a former president saw key logistics arteries for the continent shuttered as rioters torched trucks and caused millions of dollars in damage to stores and warehouses, spurring concerns about looming shortages.

The Road Freight Association says more than 35 trucks have been either wholly burnt out or very badly damaged since July 10 on key routes in KwaZulu-Natal province, home to sub-Saharan Africa’s biggest port of Durban, as well as in the coal-rich Mpumalanga region and the economic hub of Gauteng, where Johannesburg is located.

The arson led to the closure of the N3 highway that links Durban to Johannesburg and is also the start of trucking routes used to transport goods and commodities to and from nations as far north as the Democratic Republic of Congo.

Estimating the operational-asset costs to haulers at about US$21 million and counting, RFA Chief Executive Officer Gavin Kelly said that’s just the “tip of the iceberg.”

“The cost to the South African economy will run into millions of US$ lost as business confidence from foreign investors, and those who use South Africa as a transit hub, turn away from us,” Kelly said. “The ‘Gateway to Africa’ has been lost and these attacks will further cement the move of transit freight from South Africa to neighboring countries.”

The freeze on N3 movement is hurting citrus farmers in the country, which is the world’s biggest exporter of the fruits after Spain and is in the middle of its shipment season, said Christo van der Rheede, the executive director of AgriSA, the nation’s largest commercial farmers’ group.

“They can’t harvest their produce because they can’t transport it to the harbor,” he said. Van der Rheede has also received reports of sugarcane fields that have been razed, livestock theft and intimidation of farmers.