South Africa is entering a time of uncertainty, economic downturn, and trying times for businesses and residents amid Covid-19.
The Ermelo Business Association (EBA) reached out to the Highvelder to shed some light on the current problems and challenges residents and businesses in Ermelo face, but also indicated potential solutions.
On a local level, there have been many promises of change and renewal by municipalities, but with businesses having experienced a diminished ability to pay their municipal accounts, it seems like everyone is in for a tough time.
For business leaders, the Eskom accounts which hang over the municipality’s head, is a cause for concern.
Due to businesses facing reduced incomes and therefore defaulting on their payments, Msukaligwa could also potentially find itself in hot water, should they fail to honour their financial agreements to Eskom.
Because of this, EBA is of the opinion that municipalities will be doing some inventive overreaching in their efforts to cover their expenses.
EBA said that over more than two decades, turnabouts on local municipal level are exceedingly rare.
This is where the private sector organisations have tried to play their part, but have generally been rebuffed and ignored, according to Mr Athol Stark, President of the Ermelo Business Association and Chief Tourism Coordinator.
“Apart from businesses suffering diminished incomes, the general public has had to endure water and electricity outages as well as inflated rates on services that are seldom efficiently rendered,” Mr Stark said.
“The fury of rate payers has become a ticking time bomb in Ermelo and it will not be surprising if residents begin contemplating payment boycotts.”
Mr Stark said if one considers Eskom’s load shedding and the fact that municipalities are now appearing to be overreaching, more businesses will be at risk of closure or failure.
He explained that EBA believes the most prominent evidence of overreaching is through the municipality’s inaccurate billing system.
“Businesses also have to take out additional licenses and have to comply to extra bylaws, all which financially contributes towards the municipal coffers.
“Unfortunately, the promise of better services from the municipality might be an economic pipe dream with a very sad prospect of business closures, job losses and an ever-reducing pool from where the municipality’s financial support comes.”
The EBA questions the ability of the municipality to rescue the local economy at this stage, when according to them, the municipality is still entrenched in years of dogmatic politics, racial markers in business development, and also display business bias.
“With this in mind, the chance of South Africa bouncing back from the lockdown is unfortunately highly unlikely, unless there is a meaningful change of thinking at municipal level,” Mr Stark said.
He, however, stated that due to Covid-19’s impact on the income of businesses and residents, government is presented with a golden opportunity for open communication, inclusive cooperation and pro-growth strategies.
Read the complete article in the next Highvelder Newspaper.
