Page 2 - KZN Business Sense - Vol6 No2 -eBook

MOODY’S DOWNGRADE

WILL HURT SA’S POST COVID

RECOVERY KWAZULU-NATAL BUSINESS

CHAMBERS COUNCIL :
Chairperson: Judith Nzimande
Secretariat: Lihle Msweli
Nigel Ward, President, Durban Chamber downgrade to junk status will social and economic initiatives debt and bailouts cannot T: +27 (0)35 797 1807
of Commerce and Industry NPC put additional pressure on to service debt. continue indefinitely and M: +27 (0)83 571 0486
our economy and financial without repercussions. Address: ZCBF Community Park,
markets and extend our road to South Africa’s excessive debt
he Durban Chamber economic recovery. level is a considerable threat The Durban Chamber believes Gate 5, Business Community
of Commerce and to our fiscus, and we need to that all social partners need to Building 1st Floor, Guldengracht
TIndustry has noted The Durban Chamber believes limit our borrowing and reduce pull together to promote South Street, Richards Bay, KwaZulu-
Moody’s Investors Service that the downgrade will current debt levels, given the Africa as a preferred investment Natal, South Africa
decision to downgrade South threaten investor confidence low levels of economic growth. and tourist destination to local Email: LMsweli@kbcc.co.za
Africa’s sovereign rating to junk with numerous investors Furthermore, the Durban and international investors Website: www.kznchamber.co.za
status. The Durban Chamber withdrawing funding in the Chamber urgently calls on in order to restore business
believes that the timing of this coming months. Additionally, the government to modify its confidence. The Durban
downgrade could not have come the downgrade will result in approach towards state-owned Chamber will continue with and conducive for inclusive
at a worse time as South Africa South Africa’s borrowing costs enterprises (SOEs). Even though robust engagement with and sustainable economic
is experiencing the negative increasing, resulting in the the Durban Chamber strongly government to ensure that
economic and health effects government reprioritising its believes that our critical SOEs implemented policies are indeed growth. 
of novel coronavirus disease financial resources. This could are too important to fail, the the best possible options in the
(COVID-19) pandemic. This result in South Africa forgoing continuous cycle of expanding interest of the private sector For more information, visit
www.durbanchamber.co.za

COMMENT ON FURTHER LOCKDOWN IMPACT

ON SOUTH AFRICA

Solly Suleman, President Minara its people based on the state of infection will slow down. After up and how do we overcome nation, we need a complete
Chamber of Commerce of the economy as well as the the lockdown there won’t be a the dependency that has been assessment of our situation in
catastrophic economic impact return to normality for at least created? South Africa, the role we have
with a longer lock down. three or more months. played in the past and the role we
here have been many Does the private and NGO can and should play in the future
comments on whether the The 21 day lockdown was driven This means that there will have sector have the funds and to further the cause of South
Tlockdown will continue by the global move to manage the to be serious restrictions which capacity to continue with the African citizens. As Muslims are
after the 16th April and other internal spread of the virus. This could include: feeding and support for longer soon to observe the month of
issues of concerns vis a vis needs to be dramatically reduced 1. Curfew from 6pm to 5am than 21 days well into the next Ramadaan (month of fasting),
businesses that will not open; to manageable levels for private 2. All businesses except essential month? the Ulema (Muslim Theologians)
the potential of phenomenal job and public hospitals to cope with services will close by 6pm needs to plan for different
losses, and the repercussions. admissions for ICU/HCU beds We need to dissect the various scenarios for Ramadan in the
and ventilators. 3. Masks will be almost areas that must be considered, event of restrictions to numbers
We anticipate that this compulsory when one leaves be it health care, social services,
lockdown cannot continue in There will not be a magical halt home business support, relief co- in gatherings eg: database of
the interest of our country and to the infections, but the spread 4. Domestic/international flights ordination and more to ensure hufaaz (religious scholars) and
numerous venues to keep in line
will be discouraged for a scenario planning prepares us for with gathering limits for taraweeh
further period the next few months. (Prayer practised by Muslims
5. Travel between provinces will We are in for a rough ride! during the fasting month).
be controlled
6. Testing will continue at a It will be a long journey leading It is going to take every South
faster pace. We hope that to possibly five tough years. African to make sacrifices to
the pin prick quick test will Even the established financially SAVE SOUTH AFRICA and
be available well-off businesses will be each one of us needs to play our
part! We cannot under-estimate
7. Maximum numbers in effected since job losses and the impact of this crisis and we
gatherings probably 10 to 20 poverty means less buyers, lower pray to the Almighty to guide us,
sales, lower profits etc.
At this point government, protect us and save us. 
private sectors and businesses This represents a unique and
are feeding and supporting our possibly once in a generation For more information kindly email kzn@
needy communities. The question opportunity for a complete reset minara.org.za
South African President Cyril Ramaphosa is: how long can this be kept at all levels. As the South African Issued on behalf of the Minara Chamber of
Commerce President and Board of Directors

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