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Road Freight Association CEO on how the unrest impacts SA’s economy
The unrest in South Africa under the guise of former President Jacob Zuma’s incarceration has included the burning of trucks and blockages of main transport routes. The South African Chamber is Commerce & Industry has noted however that the violence has been happening intermittently, even before Zuma’s jailing. So what really is going on? Gavin Kelly, CEO of The Road Freight Association joins CNBC Africa for more.
Tue, 13 Jul 2021 16:27:12 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The unrest has severely disrupted the road freight industry, which plays a critical role in South Africa's logistical system and accounts for 88% of the country's freight.
- The violence has escalated to unprecedented levels, leading to mass looting, destruction of property, and a ripple effect on supply chains, prices, and access routes to neighboring countries.
- The economic impact of the unrest is substantial, with estimates of billions in losses, affecting wages, transport companies, cargo owners, ports, and the retail and wholesale sectors.
The recent wave of unrest in South Africa, under the guise of former President Jacob Zuma’s incarceration, has had a devastating impact on the country's economy. The burning of trucks and blockages of main transport routes have not only disrupted the flow of goods but also instilled fear and uncertainty in the business community. Gavin Kelly, CEO of The Road Freight Association, expressed deep concern over the situation, highlighting the critical role of road freight in the country's logistical system. With 88% of South Africa's freight relying on road transport, any disruption in this sector spells trouble for the entire economy. The sporadic violence, which had been occurring even before Zuma's imprisonment, has escalated to unprecedented levels, resulting in mass looting, destruction of property, and a ripple effect on supply chains and prices. The South African Chamber of Commerce & Industry noted that the violence has spread beyond major highways, impacting key economic hubs and access routes to neighboring countries. This ongoing crisis has raised questions about the long-term implications on the economy and the challenges faced by businesses in the region. As security forces and the army intervene to restore order, the road freight industry grapples with immense challenges and uncertainties.
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