North Coast businesses face major knock as industry suffers under lockdown

The Coronavirus lockdown has impacted countless businesses across the North Coast and while most appreciate the need for the lockdown, the extension to the end of the month has left workers fearful that they may not have jobs to return to.

Ilembe Chamber of Commerce CEO, Cobus Oelofse said different economic sectors had been impacted in different ways and the worst affected sectors included Ballito’s lifeblood – tourism, construction and real estate.

“These sectors have ground to a halt and with the majority of business relief being aimed at small, medium and micro-sized enterprises (SMMEs), bigger businesses are finding themselves out on a limb, depending on relief measures introduced by banks and other financial institutions.”

The North Coast Courier contacted some essential businesses running large-scale operations. While they have not been impacted that heavily, they have had to change the way they run their operations.

The bread producer Sasko’s largest bakery operates at Shakaskraal and their employees have embraced the moral obligation of providing an essential service, said group manager of communications, Deborah-Ann Sharwood.

“We were overwhelmed with the positive response from all our employees,” she said.

While there was some initial confusion of different interpretations of regulations relating to the delivery of bread, operations are again running smoothly for the factory which produces more than 200 000 loaves of bread a day.

Other complications included the changes to trading hours and transport regulations for retailers.

Ballito Lifestyle Centre co-owner Bruce Rencken said all businesses would be under pressure owing to the challenging and uncertain times.

“The initial focus of all business was compliance with legislation, operational issues, preparation for store closures, staff and communication. The attention is now turned to ensuring that we all protect our businesses during this period, that we have businesses to come back to and that will continue to serve and to employ the people of South Africa,” he said.

Sugar producer Tongaat Hulett has taken a similar stance in being proactive, with skeleton staff conducting crushing at Maidstone, Amatikulu and Felixton mills, which started earlier this month.

“We have not been as heavily affected,” said Tongaat Hulett communications officer Virginia Horsley.

The textile industry, on the other hand, is not in a happy place. Director of Associated Spinners in Isithebe, Harry Pieroni, said their operations were labour intensive despite being world-class in terms of technology.

“We have been subject to complete shutdown of our production facility,” said Pieroni.

Associated Spinners provides high quality yarns which are shipped to their Johannesburg branch, Aranda.

From there, yarns are weaved into items such as Basotho blankets (they made the blankets worn by the Wakanda warriors in the Hollywood block buster Black Panther).

They also supply the upholstery and furnishing sectors. The company has been operating in Isithebe since 1985 and employs more than 200 workers.

“Fortunately, the company has been able to alleviate some of the financial strain we face. Government assistance by agreement between the Southern African Clothing and Textile Workers Union and the National Bargaining Council has seen funds paid through the Unemployed Insurance Fund (UIF) to assist staff with some loss of income.

However, no formal agreement exists at this stage regarding the extended lockdown period.

“We are the main source of product for our Randfontein-based factory, delivering goods for conversion at least twice a week. The vulnerability and viability of our business is first and foremost on our minds right now,” said Pieroni, who is concerned about the financial strain post-lockdown, as customers’ needs may have shifted to the basic essentials.

“Utilities have to be settled and suppliers need to be paid, but we hope to restart operations as soon as possible.”

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