Beachfront lawlessness puts stranglehold on North Coast business confidence

Drunkenness, fighting and lack of policing on the Ballito beachfront put a severe dent in the festive season, the business community believes, and spells a worse future if the situation is not brought under firm control.

While the first business survey of 2020 showed some improvement of confidence in some sectors of the local economy, this was overshadowed by a gloomy picture of low confidence in government structures, poor service delivery specifically in road conditions and street lighting, lack of policing, farm attacks and general lawlessness.

Business owners believe that is the ongoing lawlessness on the Ballito beachfront is not stopped quickly, tourism will suffer in the longer term.

The report of the bi-annual business survey conducted throughout the iLembe region was compiled by iLembe Chamber of Commerce CEO Cobus Oelofse, Enterprise iLembe CEO Nathi Nkomzwayo and economist Richard Downing.

While the authors are at pains to point out that some sectors of the economy showed improvement in confidence, as in some sectors of agriculture, retail and vehicle sales, overall confidence was still in negative territory as impacted by factors largely out of the control of local businesspeople.

The threat of expropriation without compensation, a low sugar price combined with sugar tax and the crippling of Tongaat Hulett, as well as an increase in ‘farm attacks’, had a severe effect on agriculture.

The manufacturing and assembly sector was hit particularly hard by load shedding.

Construction, property development and property sales, a key sector in the iLembe District’s economy, was the only sector that recorded a decline in confidence over the last six months.

Real estate sales were reported to be subdued, with the unresolved land occupation in Sheffield Beach frustrating real estate interest in this significant development node.

The “shocking” service levels at the Durban Harbour, resulting in the slow clearing of containers and the diversion of containers to alternative ports, ensured that the transport, warehousing and storage sector kept its bottom slot.

But it was not all doom and gloom.

Retailers reported better figures than the previous year even though the season started later.

Although food sales were flat, liquor sales in particular skyrocketed.

And the feedback from rural based retailers and restaurants was that trade exceeded expectations, with trading in some instances being described as “far better than previous years”.

One retailer attributed this increase to the innovative use of traditional market practices, such as stokvels and saving clubs, allowing for the advance booking of smaller functions such as birthdays and baby showers.

iLembe Chamber CEO Oelofse said it was a great pity that the consistent theme of feedback, from both tourism and retail respondents, was the unprecedented lawlessness along the southern KDM beach nodes.

Business owners were very worried about the 22 stabbings in the area over the holidays.

“There was no control on the beach front between Hops and The Galley. Drunken people on the beach fighting and harassing people, braaiing on the beach, taxis blocking off Compensation Beach Rd restricting access to people who wanted to come to the old Ballito village to eat at beachfront restaurants.

“KDM did not have a plan to monitor and prevent this. If this carries on many businesses will be forced to close as people do not want to come to the old Ballito village anymore.”

With regards to business sentiment per region within the iLembe District, the two smaller local municipalities were the most confident, with the business confidence in Maphumulo and Ndwedwe the only regions in positive territory.

Mandeni, which hosts the Isithebe Industrial Estate, the industrial heartland of the district, is the least confident region.

Overall business confidence in the KwaDukuza municipal area was also negative, citing factors of crime, poor service delivery, the cost of doing business and overtrading within certain sectors.

However, a slightly more positive outlook for the next six months prompted the authors to express the belief that they should concentrate their efforts on “productive collaboration between the private and public sector,” focussing on addressing persistent inherent structural issues.

The report concluded: “The private sector and all levels of government within the iLembe District are committed to partnering on specific initiatives that will aid the viability and growth of small and medium enterprises and secure investment in key economic sectors and geographies in our district.”

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