Page 11 - KZN Business Sense - Vol6 No3 - eBook

Photo Courtesy of Barry Bowditch (www.bowditch.co.za)
COVID-19 KZN ECONOMIC AND BUSINESS

IMPACT ASSESSMENT 2020

INTERIM RESULTS FOR ILEMBE DISTRICT MUNICIPALITY

he KwaZulu-Natal Business that dominate the iLembe District
Chambers Council economy. In summary, the most Sector Operating In
T(KBCC) is undertaking an pertinent findings were that:
assessment of the impact of ■ 82% of those surveyed
the Covid-19 pandemic, and indicated that the pandemic Health & Wellness, incl. Medical & Fitness 10.1%
the resulting restrictions on had either a severe impact Financial & Business Services, incl. IT & Communications 11.7%
economic activity, on businesses on their businesses (operations 3.9%
in KwaZulu-Natal (KZN). reduced by 50%), or has Transport, Warehousing, Storage 17.1%

The assessment is being resulted in temporary or Warehouse, Retail, Vehicle Trade
conducted in collaboration permanent closure of the Tourism, Catering, Accommodation, Property Management 16.7%
with the KZN Department of businesses Construction, Property Development, Property Sale 21.4%
Economic Development, Tourism ■ Almost 50% of all businesses
and Environmental Affairs indicate that they are required to Manufacturing Assembly 14.8%
(EDTEA) and the University of restructure their operations Mining, Quarrying 0.0%
KwaZulu-Natal Graduate School and/or businesses
of Business and Leadership ■ 42% of local businesses are Agricultural Processing 0.0%
(UKZN), with the support of the unable to meet loan Agriculture, Forestry, Hunting 4.3%
Vuthela iLembe LED Project. repayments and financing costs

The survey was aimed at ■ 58% of local businesses are development stakeholders is that district, including the iLembe
developing an understanding of unable to meet fixed ■ Nearly half of the businesses
the extent of the pandemic’s operational costs experienced severe impact on a mediocre response to these Chamber of Commerce, Industry
and Tourism on behalf of
challenges, or even worse no
impact on businesses of different ■ 70% of all businesses are staffing levels, salary cuts and response at all, will have grim business, will have to put their
sizes, locations and sectors across experiencing a decline in temporary layoffs consequences for the region’s heads together and decide what
KZN. The results will influence demand for products and
the design of interventions in services The results are a warning about investment appeal and economic we need to do differently, and
competitiveness.
response to the impact. the contraction of our regional with a sense of urgency. 
■ 57% of businesses indicated economic activity, and resulting A targeted response will have
The interim survey results that they will not be able to consequences, specifically to focus on measures that will Contact: Cobus Oelofse
reported below focus on survive beyond three months, consumer spend and disposable yield results, and ignore the E: ceo@ilembechamber.co.za
businesses that indicated iLembe considering the level of income, unemployment levels high level talking about nice to W: www.w.co.za
as their district municipality lockdown and commercial property values. haves. Business continuity and
in which their main business ■ Only 33% of businesses will economic recovery measures
activities take place. survive longer than six months, These are unprecedented cannot include the things that we
considering the level of economic times with significant have always done, or should be
The results confirmed the business uncertainty, exacerbated
dire impact that the pandemic lockdown by the pandemic. The tough doing anyway.
is having on local businesses, ■ 12% of businesses experienced message to all economic All the social partners in the
especially in some of the sectors permanent redundancies

Impact of Covid-19 on Business Tarding Nature of Adverse Impact of the Pandemic

PERMANENT CLOSURE: None of the above 4.2%
Our business shut down permanently 3.8% Experienced mental health issues as
and will not reopen anxiety, despair... 30.5%
TEMPORARY CLOSURE: Liquidating of the business 0.9%
Our business has not been able 52.5%
to trade/allowed to operate Mothballing of business operations 13.6%
SEVERE IMPACT: Re-structuring of operations and/or business 49.6%
Our business had to scale down operation 25.4%
by more than 50% Restructring of debt 28.8%
MODERATE IMPACT: Forced sale of assets 7.6%
Our business had to scale down operation 8.5%
by up to 50% Unable to meet loan repayments 42.0%
and financing costs
SLIGHT IMPACT: Cancellation and postponement of capital projects 30.9%
Our business had to scale down operation 4.2%
by up to 25% Unable to meet fixed operational costs 58.1%
Cancellation of orders, reservations and/or planned 49.2%
NO IMPACT: events
Our business operated as normal 5.5% Decline in demand for products and services 69.5%

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