The economic impact of the nationwide shutdown of the Economic Freedom Fighters (EFF) is likely to be felt in the coming months, with Everest Wealth saying it is taking pro-active action to counter the protests.
The group said that although there was no direct economic impact from the shutdown and the rand traded regularly there was another good day on the Johannesburg Stock Exchange (JSE), but the impact could be seen in the next few months.
Everest Wealth financial advisor Riaan Grobler warns that consumers will ultimately pay for disruptions and interventions as a result of the national shutdown.
Increase spending
He said the deployment of the SA National Defense Force (SANDF) was affecting taxpayers’ pockets and putting pressure on state coffers, with corporate spending on private security also to be considered where consumers would feel shortchanged. profit means less dividend
Grobler praised the pro-active actions by the government, the private sector and civil society to try to maintain law and order and that the closure of the EFF did not lead to major disturbances, incidents of public violence or looting.
“South Africa’s economy cannot repeat the riots of July 2021, with the impact still being felt. The main impact of protests and strikes is usually only felt a few months later with the general consumer ultimately having to bear the burden,” he said.
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Major businesses, Grobler said, have contingency plans in place, including increased personal security, in anticipation of possible disruptions during Monday’s national shutdown.
He said some businesses had decided to close their doors for the day for fear of looting, meaning some people would be out of work.
Grobler believes that ordinary people are also fed up with the disruption that comes with protests and strikes.
He said that the fear of what happened during the national shutdown caused many people not to continue their day as usual; with some choosing to stay off the road for fear of damaging their vehicles.
Loss in productivity
“Others may prefer to stay at home to avoid public violence. The country cannot afford to lose one day of productivity. Businesses that have to be closed and people out of work have an economic impact that will ultimately affect consumers again, for example little or no increase, let alone bonuses, Grobler said.
He said protests and strikes could also increase during next year’s elections and this is not a good sign for the economy as it could lead to rising unemployment, rising interest rates, a weakening of the Rand and rising taxes due to the loss of income for the country.
Much ado about nothing
The Democratic Alliance has dismissed it as “much ado about nothing”, saying the court interdict ends the violation of South African rights through intimidation, violence or coercion.
Spokesperson Solly Malatsi said on Tuesday that two DA bans against threats of violence – one by the City of Cape Town and the other by the DA – prevented the EFF from engaging in illegal behavior yesterday.
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“They know that the consequences will be too heavy to bear,” he said.
Malatsi said the Gauteng High Court, at the request of the DA, on Saturday banned the EFF from violating the rights of South Africans to work, go to school, and trade.
“We believe that this ban is important to strengthen the arm of South Africa’s law enforcement agencies and security services to uphold the law on the ‘national shutdown,'” he said in a statement.
The EFF’s bark is bigger than its bite
He said the bark of the EFF is always bigger than the bite, saying they have seen far too many times in the past how the party claims to have national influence when they don’t.
According to Malatsi, the only way to get rid of nearly 30 years of ANC mismanagement is not through death threats or any form of intimidation or violence, but by voting out of power.
“The only way is by voting for a party that can really end the thirty ANC-rules that have robbed the country and the people and are directly responsible for the suffering of millions of South Africans,” he said.
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On Monday evening, the EFF thanked those who heeded the call for a national shutdown, saying the protest was not only successful but was not marked by violent incidents despite the overwhelming fear of the State.
EFF claims victory
The party said that since midnight, the clarion call was answered and the masses, especially the youth, took to the streets.
The EFF said most of the damage was done by the ‘trigger happy’ police and the state itself, which it said the party did not need to spend R166 562 058 on a month’s army deployment.
According to the EFF, another proof for the success of the national shutdown is that the state electricity utility Eskom was able to delay the spread of the load because it was cheaper than anticipated for electricity.
The party said this was only because no major industries were operating and the majority of businesses heeded the call to close in anticipation of the shutdown.
Buses and taxis are not operating in the majority, as malls, shopping centers and taxi ranks are empty, the EFF said, and trucks that usually transport minerals to the port are stopped and some fuel stations are not operational. .
The EFF vowed that the national shutdown was just the beginning and called on supporters to intensify calls for Ramaphosa to step down on the picket line, across the business and government sectors.
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