Violence in SA: Small businesses worried about bailout

Treasury has set aside R2.3-billion to help small businesses get back on their feet. But some are wondering whether the businesses that need it the most, will receive the money. eNCA’s Senior Reporter Aviwe Mtila visited some small businesses and filed this report. Courtesy #DStv403

JOHANNESBURG - Despite the promise of R2.3-billion in government help to small businesses, those affected by recent looting are worried about red tape.

Treasury has announced close to R40-billion in relief to those who were affected by the unrest, as well as by COVID-19 lockdown measures.

READ: SA will not be borrowing more money: Treasury DG

Finance Minister Tito Mboweni said the chaos in parts of KwaZulu-Natal and Gauteng had a major impact on the country's economic recovery trajectory.

Some are wondering whether the businesses that need it the most, will receive the money.

READ: Violence in SA: Affected businesses urged to claim from insurance

“A lot of these micro-businesses have been affected by the lockdown measures. It’s affected their livelihoods, their income, their profitability etc, and a number of them won’t be compliant," said Vusi Thembekwayo, MyGrowthFund founder and CEO.

"I think the plea to government would be [to] help the businesses that were affected, not the businesses that are compliant. Because if they do that, I would guarantee you that would almost certainly destroy 50 percent of the businesses that were affected by these lootings.”

* eNCA’s Senior Reporter Aviwe Mtila visited some small businesses and filed this report.

Source
eNCA

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