KZN Business Rescue Fund to assist uninsured businesses hit by unrest

Without acknowledging the driving forces of inequality behind social unrest, CEO and founder of The Peace Agency, Justin Foxton warns communities could expect to see its return.

He maintains that inequality served as a key driver of the looting and rioting that led to the destruction of many businesses across the province earlier this month.

Announcing the launch of the KZN Business Rescue Fund, Foxton said: “Whilst our specific mandate is orphans and vulnerable children, we are positioned to facilitate social justice and restoration projects under our auspices.”

The Peace Agency is a non-profit, public benefit organisation with over a decade of experience in the social development sector.

As an iLembe Chamber of Commerce partner, the agency will work with the chamber to help identify businesses in need.

iLembe Chamber CEO, Cobus Oelofse said there was an urgent need to ensure access to essential goods, especially within rural areas where predominantly informal trade took place, but of greater long term affect was that investor confidence was under huge strain.

“The rebuilding and re-equipping of demolished structures will take time, but the largest risk to be managed is the loss of investment and investment appeal which is a mountain to climb for the provincial economy,” he said.

Many small businesses which have been destroyed were not insured.

The agency invited those with investment savings or retirement funds to consider drawing an amount and giving it to a business to rebuild itself.

“This will not be a loan. It will be a community insurance payment,” said Foxton, who also invited community groups such as churches, schools and even exercise clubs to contribute smaller amounts.

The agency is calling on donations of between R5 000 and R50 000.

“Unless we start to apply the principles of social justice in our communities then these sorts of incidents will continue. Let’s not wait for more of this to happen,” said Foxton, who called for the proactive distribution of wealth from top to bottom.

One of the first businesses to be assisted was Mandeni-based shisanyama and butchery, Mama Joyce’s.

Duduzile Joyce Ncanana – winner of the iLembe Chamber of Commerce’s Entrepreneur Competition in 2014 – saw her shisanyama and butchery business completely destroyed.

The 12-year-old business employs 15 staff and needs about R200 000 to rebuild.

The agency said it would conduct detailed due diligence and ensure that a real need was identified in each prospective small business.

Funds would be used for infrastructure, stock and, where possible, paid directly to suppliers.

Damage assessments throughout the iLembe District continue and Oelofse said it remained difficult to quantify the loss.

He said the unrest had dealt yet another blow to the levels of disposable income, and the downward trend in consumer spending which would lead to further job losses.

Donors will be issued with a section 18A tax certificate.

For more information contact Justin Foxton at justin@peaceagency.org.za or 082 354 1839.