CLEM SUNTER’S LOW ANARCHY ODDS ARE WHERE to from ROAD to ANARCHY OMINOUS - HEYSTEK HERE for SA? Biznews Digest: Special Report the RATIONAL PERSPECTIVE

PAGE 7 PAGE 14 PAGE 19 FREE LUNCH OF THE THOUGHT LEADER// OPINION// FORWARD-LOOKING// INVESTING WORLD CLEM SUNTER’S LOW ANARCHY ODDS ARE WHERE TO FROM ROAD TO ANARCHY OMINOUS - HEYSTEK HERE FOR SA? BizNews Digest: Special Report THE RATIONAL PERSPECTIVE

WWW.BIZNEWS.COM JULY 2021 BIZNEWSCOM Will SA rebound – or is worse to come?

By Alec Hogg* centre of Gauteng, the plan involved dispatching young tribal Zulus armed with automatic rifles into nyone reflecting on my Zulu-dominated communities. They homeland’s fresh rock offered their fellows an opportunity bottom would do well to to loot shopping malls, promising Arecall our trait of ascribing much protection, zero personal risk and higher weighting to bad news no consequences. than good. Esteemed researchers, Jason McCormick, a shopping Nobel laureate Daniel Kahneman centre developer who was on site among them, quantify it at nine- defending these assets during SA’s to-one. But Kahneman also week of shame, says apart from preaches WYSIATI – What You shooting at security guards to open See Is All There Is. The optics the way for the mob, the mini-impis were very bad indeed for South specifically targeted fire-fighting Africa during the week running equipment to increase the damage up to July 18, birthday of its deity of post-looting arson. Nelson Mandela. The plan worked well in most parts The country’s parlous state was of KZN, especially the capital city captured during its risk-averse Pietermaritzburg, the commercial president’s televised address two centre Durban, and in major rural nights before the five day orgy towns Newcastle and Ladysmith. of unrestrained plunder peaked. Large shopping centres were robbed, Cyril Ramaphosa, attempted trashed and burnt. It was only reformer of the ruling African through the intervention of local National Congress (ANC), was communities that anything was left bereft of ideas. On eNCA, a live box © Zapiro (All Rights Reserved). Originally published in Daily Maverick. standing. alongside the presidential lecture Similar looting orgies were showed young men looting a SA into the foreground of a global kms - 30% of the province - one fifth Overlaid onto a stagnant economy, instigated in the commercial centres branch of the national blood donor tend where dysfunctional nation the size of England. The king retains SA’s pre-Zuma budget surplus of towns near the provincial capital. service at a burning shopping mall. states will split into smaller units. many privileges of feudal rulers, became a massive deficit, funded In places like Mooi River, Richmond That pretty much summed up what Other Afrikaner leaders talk of the including a generous state stipend. by a trebling in the debt to GDP and Greytown, thousands of small was going down. unrest as a spark to create a nation Also, he promoted institutionalised ratio from 26% to the current 80%. businesses were wiped out, many of Citizens in were abandoned by of “communities of communities”. polygamy, an example followed by In December 2017, most of the which had served local communities the state’s security services in It has also accelerated already tribal subjects. Among them Jacob nation celebrated when Zuma’s for decades. their hour of greatest need. Not significant momentum for secession Zuma, he of four wives and 26 anointed successor, former wife In Gauteng, attacks on shopping surprisingly, they now question by the well governed Western Cape, children, whom the ANC appointed Nkozasana was narrowly beaten centres were executed in Zulu- whether this fresh rock bottom the only province of nine not ruled the country’s president in 2009. by Ramaphosa at the ANC’s dominant areas often close to is made of granite or sandstone. by Ramaphosa’s ANC. In Zuma, the ANC chose a poor presidential elective conference. single sex hostels which are home Will we finally rebound – or is it What is the rational mind to make director, especially for a modern Since his deal-driven victory, to migrant workers from rural KZN. a portent of even worse to come? of all this? economy. More comfortable in an Ramaphosa, raised in Soweto by a For five days and nights, for the most Right now it’s a tossup. Applying Kahneman’s WYSIATI, it “ibheshu” (calf skin apron covering police sergeant father and mostly part the state’s protective services Futurist Clem Sunter, a national is obvious whatever his other failings, the butt) than besuited, while in schooled in the family’s Venda tribal were either completely absent or treasure whose 1980s “High Road, from the many interviews on BizNews office Zuma famously told a live TV homeland, has publicly campaigned mere spectators. They did not apply Low Road” scenarios nudged the during the chaos, Ramaphosa is audience that all other continents to end corruption. Under his the most basic mob-dispersing Apartheid establishment towards correct is ascribing the July 2021’s would fit into Africa, adding that protection, the Zondo Commission weapons like water cannons or tear peaceful settlement, reckons full civil unrest to ethnicity. the continent’s biggest drawback into State Capture has ventured well gas. This supports the view of some blown anarchy is now a 50:50 call. Evidence suggests it was an was lacking a major river. He beyond what was intended by its observers, particularly in KZN, that Prior to the riots he put it at 30%. attempted coup engineered by tribal also publicly mused how, given initiator, the same Jacob Zuma. the police was complicit. On the upside, leaders of Zulus, descendants of Shaka, victors dictatorial power, he’d quickly “fix” The anti-corruption attack’s red In the middle of the chaos, organisations around which long- at Isandlawana, and comfortably the SA. letter day was on July 8th when McCormick’s company even besieged Afrikaners have massed, largest single group in a country With hindsight, it is now clear Zuma was escorted to jail. Unrest issued a desperate press release are swinging from despair to whose 11 official languages reflect that Zuma’s ascension unleashed a which left more than 300 dead and begging law enforcement agencies cautious optimism. its cultural diversity. plunder of national resources. This directly cost over R30bn in looting to help its mall in Thembisa after a Among them long-time pessimist There are 10m Zulus in their occurred through industrial scale and wilful damage to infrastructure, “significant attack from high calibre, Frans Cronjé, outgoing CEO of KwaZulu-Natal heartland, a sixth of theft and the dispensing of largesse began within hours of Zuma’s live ammunition throughout last the 92-year-old Institute of Race the national population and a rich to favoured groups like unionised incarceration. night.” Relations, is suddenly upbeat. prize for ambitious politicians. public servants, university students It was well organised. Focused in Because he finally sees hope – Many live on land owned by the Zulu and 18m recipients of social grants KwaZulu-Natal and Zulu-dominated Continues on Page 2 believing the chaos could catalyse king’s Ingonyama Trust’s 28 000 sq (in a population of 58m). pockets in the country’s commercial 2 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS Will SA rebound – or is worse to come? ike McCormick’s shopping centres, the two day battle for the Alex Mall in Gauteng communities and more freedom from the the middle class, especially in KZN, - where a fire-fight lasted hours - was only won socialist controlled centre. Many previously were abandoned to their own devices. after taxi drivers arrived later in the night and cowed citizens have suddenly found a voice. L On the reasonable assumption that once started shooting back with live ammunition The once inconceivable end of ANC rule looters finished off the malls they would head (the company’s law-abiding security guards in 2024’s national election now is widely for suburbia, local communities coalesced into were restricted to rubber bullets and birdshot). predicted. self-defence units to protect their homes. The taxi drivers were inside the fortress at the On the flip side, there is a very real danger Barricades were erected and manned through Thembisa Mall before sundown. that the ANC government will double the night by armed citizens. Many reported In KZN, Pietermaritzburg’s biggest shopping down on ruinous economic policies, “scouts” looking for weak points. In numerous centre. The Liberty Mall, was saved after destructive social engineering and targeting cases, such newly created “Dad’s Armies” were hundreds of heavily armed taxi drivers of minorities. Despite GDP per capita forced to face down looting mobs. appeared very publicly on the scene, clearly having fallen each year on the past decade Appallingly, in a number of cases in KZN the spoiling for a fight. and unemployment ballooning to over 40%, local (Zulu) SA Police instructed defending The situation in KZN only began turning after the archaic Development State and National citizens to stand down. They refused. In SA Police members from other parts of the Democratic Revolution ideology is very much Ballito, community members informed the country were flown in. It finally fizzled out official ANC policy. In the absence of a radical police that they were outnumbered and out- after the Army was eventually dispatched to realignment or a massive political reverse, the gunned, so had better leave. BizNews founder Alec Hogg the hot spot a full five days after the rioting fixed investment strike and export of private McCormick tells of a police station close began. The most credible reason for the delay capital is likely to accelerate. The consequences to one of the looted shopping malls whose Another was the telling intervention by taxi was reluctance of a Zuma-aligned defence would increase Sunter’s anarchy prospect to members all left soon after the looting started, associations, a powerful grouping which minister to intervene. beyond even-money. claiming to be on strike over salary grievances. regularly defies government edicts and in Where to from here? Granite or sandstone? We’ll know soon Those on the ground say the official death this case, acted in self-interest to protect its The good news is that South Africa’s centre, enough. toll is heavily understated. For instance, business. especially in KZN, held up well despite not included in the official data are bodies Long maligned as a mafia that enforces incredible pressure. The young democracy *Alec Hogg is the founder and editor of pulled out of Pietermaritzburg’s local river, near monopolies with a shoot-first-ask- must surely benefit from a previously apathetic Biznews.com. apparently drowned after two days of looted- later approach, there are numerous reports citizenry suddenly shocked into action after liquor induced inebriation. of taxi owners intervening against the looters more than a decade of drift. If the Afrikaners Read also: Among the welcome surprises is the way to devastating effect. are right – and they claim state oppression put a racially diverse middle class, especially McCormick, whose on-the-ground presence them a decade ahead of the curve – pressure Alec Hogg: Getting clarity about SA in KZN, decided to fight rather than run. makes him an excellent source, reports that will build for greater self-governance by chaos – and true origins

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acob Zuma’s arrest on July 7 resulted in a series of violent protests in the DOWNLOAD THE FREE KwaZulu-Natal province. The protests Jthen spread to Gauteng, with reports of BIZNEWS.COM APP looting reported in both provinces. In a televised speech, President Cyril Ramaphosa spoke out against the violence, warning those involved that they will be arrested and prosecuted. Currently in the midst of a deadly Covid-19 third wave, South African BN businesses are having to contend with tough restrictions in an already fragile economy. – Jarryd Neves Click on the links below to By Roxanne Henderson download your own free (Bloomberg) – Violent protests in South BizNews.com App Africa linked to the arrest of former President Jacob Zuma spread to Johannesburg, the nation’s economic hub, with another major road shuttered. That followed the closure of a key trade Protesters gesture towards police officers (not seen) as they burn tires in Jeppestown, route in the country’s eastern KwaZulu-Natal Johannesburg, on July 11, 2021. Photographer: Luca Sola/AFP/Getty Images province after trucks were torched. The protests began as Zuma’s supporters “While there are those who may be hurt and giving him the right to a fair trial.” called for his release after the ex-president angry at this moment, there can never be any Even as protests flared, police were deployed turned himself in to authorities on July 7. justification for such violent, destructive and along major routes to help enforce rules addition to being lawless and endangering Zuma was sentenced to 15 months in jail disruptive actions,” he said. “It is a matter around gatherings to contain the spread of lives, these actions have a devastating impact for defying a court order to testify at a graft of concern to all South Africans that some the coronavirus. on an already fragile economy and on investor inquiry. He denies any wrongdoing and of these acts of violence are based on ethnic “A warning is issued to those circulating confidence,” said Business Unity South Africa. challenged the sentence. mobilisation. inflammatory messages, inciting violence The outbreak of violence is a response and lawlessness, that they refrain from doing This is an edited version of article President’s warning to an “unjust” system, Jacob Zuma so,” police said. “The possibility of criminal President Cyril Ramaphosa condemned the Foundation spokesman Mzwanele Manyi charges being instituted against such persons Read also: violence in a televised address to the nation, told Johannesburg-based broadcaster eNCA cannot be ruled out.” DA to lay charges of treason and and warned that all those involved will be in an interview. “It is the result of a vicious Various business lobby groups made terrorism against ANC-instigators of arrested and prosecuted. sentence given to a 79-year-old man without statements condemning the violence. “In unrest 4 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS FT perspective: SA unrest worst since apartheid

By Joseph Cotterill for The Financial Times biggest loss, apart from the loss of lives, is the of London loss of jobs that many will incur because their The burnt ruins of a cold chain warehouse places of work no longer exist.” were still smouldering last week, sending trails KwaZulu-Natal has long symbolised two of smoke into the sky above Hammarsdale on South Africas: one of investment and job Durban’s western outskirts — a promised new creation in high-tech logistics, and another logistical heartland for South Africa. of decay and potholed roads outside of the After days of the worst looting in the history business parks. of the post-apartheid democracy, any meat Protests that began with truck burnings and that had not been stolen was rotting inside. looting quickly became an assault on food The eruption of huge civil unrest, after former supply chains, including supermarkets, president Jacob Zuma was jailed for failing warehouses and food packaging. The to attend an inquiry into corruption, has hit deliberate sabotage of such investments was KwaZulu-Natal province hard. It has long been at the heart of the unrest, Ramaphosa told a base of support for Zuma. More than 330 business leaders this week, as part of a plan “to people have died across the country during a cripple the economy, cause social instability week of violence, which ended when troops A burnt out water tanker by a damaged Engen Ltd. gas station following rioting in the and severely weaken — or even dislodge — were put on the streets. Soweto district of Johannesburg. Photographer: Waldo Swiegers/Bloomberg the democratic state.” Nowhere is the economic impact more The unrest also reflected despair over years evident than in Hammarsdale, where looters such as the South African Property Owners violence, make up half of national GDP and of joblessness and hunger worsened by the targeted some of the many retail warehouses Association and Business Leadership South almost half of the country’s population. The pandemic. “This was not a Zuma issue — it and manufacturers that extend for miles along Africa have warned. The estimated cost to the port of Durban handles 70 per cent of the was a ticking bomb,” said Thapelo Mohapi, a key motorway route from Johannesburg to province’s gross domestic product — in terms country’s imports and is a gateway to southern spokesperson for Abahlali baseMjondolo. Africa’s biggest container port in Durban. of losses to stock, damage to property and lost Africa. In Durban’s Umgeni Park area, one such Since Cyril Ramaphosa took office as exports — is roughly R20bn ($1.4bn). South “It’s currently difficult to assess what the settlement sits just below leafy suburbs and president in 2018, promising to turn around a Africa’s gross domestic product last year was total cost of the unrest is because there are warehouses, yet “people were even cooking languishing economy, hopes had been high for about $300bn. areas which are still volatile, particularly in wild plants under lockdown”, said Mohapi. As a renaissance for the area. “There had been real Some businesses may take years to be rebuilt, KZN. However, the damage is likely to cost the unrest spread, “people were taking food positive momentum. Jobs are being created,” according to industry groups. north of R20bn in KZN and the cost to the and saying ‘I don’t know who Zuma is’”. said one executive, who declined to be named. KwaZulu-Natal (KZN) and Gauteng, South country is likely [to be] north of R50bn,” said This future is now at risk, business groups Africa’s economic hub which was also hit by Thabi Leoka, an independent economist. “The Read the full article here

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im @ sab leinternational.com 5 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS Mooi River is being ‘destroyed by apathy’

onovan Carter, who has been potential here, but it’s being destroyed by operating businesses in Mooi River apathy and government culture of not doing for three decades, had a front row what it should about certain situations.” Dview of the chaos which erupted in the town. He shared what was happening with BizNews On whether law & order forces are hopelessly founder Alec Hogg – a former resident. insufficient to keep the criminality under Carter’s account of the destruction in Mooi control River is chilling. He states that this cannot “Well, currently, look – I think the whole of go on forever, otherwise “this country will the SAP, the SANDF – you know, I don’t know end up bleeding and people will leave.” – if their hands are tied with the laws in our Nadya Swart Constitution, but definitely a problem that I’m seeing arising now [is that] there’s obviously On the reason behind the looting and violence very few of them. And with riots jumping in Mooi River all over they’re thin on the ground because “To be honest with you, I would just say they are being moved around. But, you know, right now it’s a criminal element. Obviously for me – when the government security arm we have political problems in the country at such as police and SANDF and that aren’t the moment, but I think it’s people just taking here to protect citizens and citizens are now advantage of this chaos. And the criminal beginning to look at defending themselves – element is a much larger side than the political that’s just a recipe for civil war.” side – because when I look at the crowds that to make a living and educate their kids and are paid. It’s not even pay day at the end are walking around, it’s mostly youth. People feed their families. So they are devastated of the month anymore. It’s waiting literally On what the police on the scene are doing that are just breaking, for example, traffic because it’s a ripple effect. As it starts with for the government grants. So (definitely) “The police are watching. They are literally…I signs or just people’s advertising, just ripping businesses, it moves down towards the staff unemployment is a big problem here.” feel for them because I talk to them all the it down and then throwing it down. So I really and their spending power gets less. So it’s just time, because I’m very grateful that they are just think it’s boredom and criminality.” devastating for everybody.” On how long it will take to rebuild around our area and sort of at my petrol “If I look at the past – from three, four years station because we are at a strategic point – On the consequences of the protests on his On whether what’s happening is a reflection ago over the Easter periods when we had those an entry and exit point to Mooi River going staff of high unemployment amongst SA youth two years in a row – and seeing that the town to Durban and Johannesburg and obviously “Well, our staff obviously have been hit quite “Over the years, as you say, 10 years ago never recovered from those to start off with. the exit and entrance into the township hard over the last year with Covid, etc., and when you left – there was still some industry More and more people have left, especially across the road from us. So we have a lot they’re desperate to work. You know, we’ve and there were businesses that were sort of as people’s leases are ending, people who are of police presence, especially on the bridge, had staff throughout the whole town and the flourishing, but they have floundered over the tied into leases are leaving when the leases but they do nothing. They basically are there whole province, I suppose the whole country, years as more and more people have left and are ending. They just don’t find Mooi River to monitor the situation. I’m pretty positive working short time. And just as things were less people are employed and generally, Mooi viable anymore. So I don’t see that there will that’s obviously the instructions they’ve been starting to get a little bit better, we went into River is really, I would say, a 90% government be a quick recovery at all, if any. I don’t want given. There hasn’t been a single round fired the next lockdown. So, they are devastated grant town. People survive on the grant. The to just say that it’s Mooi River on its own. But by any police officer at all. The security do – because these are people that have come to town itself, which relies on local trade, has Mooi River, being the town that I live in, I more shooting than the police do.” work every day. They want to work, you know, business on the 15th when the government can only see it going backwards. We’ve been just like we do. We want to run a business. people get paid for two days and then again here 30 years next year and it’s only going Listen to the full interview They’re just good, honest people wanting at the end of the month when the grants backwards. You know, there’s just so much “This reminds me of the 70s” – David Shapiro

outh Africa’s favourite market in the 30s, it all started because of starvation commentator David Shapiro joined and anger at the system that wasn’t allowing the BizNews Power Hour to talk them to get jobs.” Sabout the chaos unravelling throughout parts of the country. No matter which On keeping your sanity during these periods way you slice it, the scenes were horrific of mayhem and reminded Shapiro of the 70s. David “It is very difficult. You’re in lockdown, in unpacked the factors at play, including the fact, I was talking to a former partner of mine high unemployment rate which has been Pano Nicolatos and Pano phoned me and we aggravated as a result of the coronavirus were chatting. He’s gone out to Luipaardsvlei pandemic. One can understand the anger (Krugersdorp area). The reason he called me and frustrating felt by many across the was that it was my 50th wedding anniversary, country, however, these acts of violence so he listens to podcasts (laughs). But he and looting cannot be tolerated. – Justin phoned me from Luipaardsvlei where he has Rowe-Roberts a shopping centre and he said they’re all in lockdown there. They heard the masses were On investing in South Africa given the chaos coming so they put up the railings, they put that unravelled up the bars, closed the shops and went home. “It applies to a lot of people that are thinking David Shapiro is the deputy chairman of Sasfin Securities My message to Pano was ‘I don’t care about about investing in South Africa or considering that, just make sure you’re safe’. In other words, it. Just take a step back, last week we had country we would want to send our people but what it has done is give them a chance to don’t look for trouble cause when those masses the news of Imperial Logistics and that into?’” express their frustrations and anger. You can come, you don’t know which side they going to was a good sign because other people are understand people that are not employed, if come from. It’s like an army marching on you.” interested. We’ve been discussing how many On the factors at play you have matriculated and you cannot find a other businesses would be taken over. One “That’s exactly it. I don’t think this necessarily job, of course you are going to become angry. Listen to the full interview would step back and say ‘Is this the kind of has to do with Zuma at all. The cause is Zuma If you read the start of the communist parties 6 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS Is now the time to be disarming citizens?

hen the government announced Owners SA has a different view on what a proposed law that would the evidence shows. It has described the effectively ban gun ownership legislation as a “train smash”, one of the Wfor self-defence, myriad South Africans flew tamer descriptions of the bill by pro-gun into a justified fit of rage. In May, firearm groups. Indeed, many pro-gun groups and activist Gideon Joubert joined the BizNews political parties have called on citizens to Power Hour to discuss the proposed bill. make their voices heard and are circulating “The trio of violent interpersonal crimes petitions that have already gathered, sum- have been increasing year on year. Yet, it’s in ming across groups, an estimated 100,000 this bizarre sort of ambiance of increasing signatures or more. violent crime and a completely dysfunctional What should we make of all this? police organ, that the government now Well, I will say upfront that I and the proposes to remove, from citizens, the IRR for whom I work are opposed to this ability to defend themselves with firearms legislation and are running a campaign to legally,” said Joubert. Himself a victim of inform South Africans about the poten- violent crime, he – along with numerous tial negative consequences of passing it. South Africans – are utterly perplexed by We have enjoined over 20,000 signatories government’s desire to limit gun ownership. Amendment Bill have ignited fierce public has received passionate responses both for to this campaign. We have arrived at this The Institute of Race Relations (IRR) also debate on the implications for legal gun and against. position by taking GFSA’s advice and said that the ban on firearms for self-defence ownership in South Africa. Gun control group Gun Free SA (GFSA) using the available evidence to inform our would make things worse for women in The draft legislation will tighten almost said: “All of us living in SA are grappling decision. South Africa who, daily, face abuse and all aspects of legal ownership, including with ways to protect ourselves, our family, So, let’s review some of that evidence. gender-based violence. Nicholas Lorimer the number of guns an individual can own friends, colleagues and wider community Two of the most significant arguments put looks at whether private firearm ownership and, most controversially, will remove from violent crime. The best way to do forward by gun-control groups like GFSA has a connection to a higher murder rate ‘self-defence’ as a reason to apply for a fire- this is to use available evidence to make are that 1) private firearm ownership is and whether more relaxed gun laws result arm, leaving hunting and sport as the only the most informed decision. The available correlated with a higher murder rate, and in women being harmed or killed by their reasons for an ordinary person to purchase evidence shows that reducing access to 2) that relaxed gun laws result in more partners. – Jarryd Neves a firearm. firearms helps make our homes, communi- women being murdered by their intimate At stake is a debate over life and death, ties and country safer.” partners. By Nicholas Lorimer over the right to protect oneself. It is there- In agreeing on the significance of evi- Proposed changes in the Firearms Control fore no surprise that the draft legislation dence as a basis for decision-making, Gun Read the full article here

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ANC factions stir ‘dangerous politics’ in constitutional court order to attend an in- South Africa’s towns quiry examining his role in corruption so widespread that it hollowed out institutions Joseph Cotterill in Durban under his presidency, according to the testi- Thapelo Mohapi looks at the mangled and mony of dozens of witnesses. He was forced scorched scraps of what were once shacks to resign in 2018. and reflects quietly that, at 38, twice now After winning the ANC leadership in 2017 have the flames of political violence in by a narrow margin, Ramaphosa stabilised South Africa left him without a home. the party’s decades-long grip on power in The first time, as a boy in the 1980s, Moha- a 2019 election and has slowly isolated his pi was given shelter by Indian neighbours predecessor’s closest allies. But the unrest in the Durban settlement of Phoenix when signals that he is confronting a faction who the brutal last days of apartheid engulfed in order to avoid jail are prepared to sacri- the nearby black township where he lived. fice a weakened state — and manipulate so- It was part of solidarity that would in time cial divisions. give rise to a multiracial democracy. “The Phoenix, Mohapi’s old refuge, was also Indian community never said at any stage swept up in the fallout. As police vanished that you are not part of us,” he says. amid looting, tragedy unfolded in a micro- The second time was the night of July 14. As cosm of South Africa’s complex race rela- riots and looting sparked by a power strug- tions. As street barricades were thrown up gle in the ruling African National Congress © Zapiro (All Rights Reserved). Originally published in Daily Maverick. against looters, armed vigilantes emerged swept heartland regions, destroyed busi- and “people that had lived side-by-side in nesses and left more than 300 dead, a fire clothes. with the deployment of tens of thousands relative peace turned on each other”, Ra- burnt through the homes of Mohapi and What President Cyril Ramaphosa labelled of troops. maphosa said last week. At least 20 people hundreds of others in an informal settle- an “attempted insurrection” in Gauteng and The violence had begun as reprisals for the were killed in the clashes in a township that ment in Durban’s Briardene suburb. “The KwaZulu-Natal, two provinces that make jailing of former president Jacob Zuma for is majority Indian but where many black fire brigade couldn’t reach it in time be- up half of the gross domestic product of contempt of court — a victory for the rule South Africans live and work. cause of the unrest,” Mohapi says. For now, Africa’s most industrial nation and nearly of law and the country’s democratic princi- Read the full article here he is living in a friend’s car and in donated half of its population, was only put down ples under Ramaphosa. Zuma had defied a Sunter’s Low Road to anarchy a 50:50 call

uthor of ‘Thinking the Future’, C l e m does the same thing for trying to introduce on scenarios – it’s called The World in South Sunter says that “the red flag of a much fairer, inclusive economy. He would Africa in the 1990’s. People said, “why did [the] looting and destruction of include quite a few entrepreneurs on that Anglo allow you to waste your time writing Ashopping malls has just raised the odds list – people like Adrian Gore who founded this book? There is no way the National Party on the second scenario and demonstrated Discovery. People who know what it’s like government is ever going to negotiate with that we are at a tipping point where urgent to set up a business. He would put the same the ANC and with Nelson Mandela. Writing action to create a people’s economy needs kind of passion into that, as he has done into fairy tales is ridiculous.” Actually, it turned to be taken.” trying to protect us from from Covid. We out to be correct and we did take the high would have regular report backs on how road in releasing Nelson Mandela. On the recent riots many new businesses have been formed in I saw him in prison about a month before he “I feel more that it’s about the desperation the townships, how many banks have set up was released and he said he’d read the book of the moment we’re in because even before (micro-lending facilities), how many websites and he took particular note of our high road the pandemic, the life of most people in this have been turned into e-stock exchanges in scenario. I’m saying that even though this may country was very hard. There was a very high the major cities? be improbable, the whole point of our process rate of unemployment. I travel regularly from How much of a supply chain of a big business (which we advocate in this book) is to put Somerset West through to Muizenberg on the like Pick n Pay and Checkers has been focused on the table improbable futures. Right now, coastal road. When I look at Khayelitsha on Clem Sunter is a well-known author and on generating entrepreneurs? Those are the it’s that the ANC will switch their economic my right, I’m not one of those people who scenario planner kind of statistics that would be regularly policy into a full scale commitment to small says, “oh gosh, how awful.” Every single one there’s community resistance to this. But what reported on, because the only way we’re business to create an inclusive economy – of those people has built that shack and has we haven’t seen is the kind of revolution with going to create jobs now and get out of the which is my version of economic freedom opened a shop on the side of the road. leaders speaking from political platforms or appalling unemployment situation, is to put – and that in a few years time, people will They’re doing the best they can. Unfortunately, anything like that. It was an opportunity that a huge emphasis on new business creation – look back and say, “you did capture in this the pandemic has really had an impact on widened very quickly to a large number of because the old world of work is over. You have particular book.” all this activity. As people were saying last people. One of those reasons, without a automation, robots and artificial intelligence. We’ve all got to now put our weight behind night, there was a spark – which was the doubt, is the fact that our economy, at the That’s why big business everywhere in the this kind of movement. It’s not just a top down imprisonment of Jacob Zuma – and then moment, is in a very dire shape. We’ve run world is no longer creating the jobs of the movement with several and a council of CEOs. suddenly people saw an opportunity of looting out of money. We’ve had years of corruption last century. Indeed, the latest statistic in It’s going to have to be a ground up movement shops, which obviously is absolutely wrong and now we’re paying the price. This event America is that two thirds of the jobs being as well in the sense of a revolution of thinking and unlawful. But it shows that we have got to basically is something we’ve got to pick up created there are in small business. It’s not a in the minds of municipalities and small towns do something about our economy right now on because it’s an indication that the worst sideline. It’s got to be turned into the number and rural areas about what constitutes the because it can have an impact for many years.” case scenario has increased in probability.” one priority for South Africa. best way to go forward in terms of creating a proper economy.” On the potential reasons behind the looting On what the high road or low road for South On whether the ANC has the ability to change “I think it’s a combination of people who are Africa is from here and embrace much-needed policies Listen to the full interview not that badly off who saw the opportunity – “The two scenarios we have in this book “That’s why I’ve written this book with Mitch but also it was the opportunity for desperate [Thinking the Future] is a people’s economy [Ilbury]. We want to show them that the future people to probably get their hands on food. where Ramaphosa sets up the same kind of is different. You’re repeating what people said Clem Sunter: What life will be like as Obviously, there’s there’s two sides to this and command council that he has for Covid. He to me in 1987 when I produced the first book we lift Covid-19 lockdown – scenarios 8 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS SA & ANC cannot co-exist in mutual prosperity

he victory celebrated by South not think the answer lies in every successful and the outbreaks becoming more violent. Africans upon news that former businessperson going into politics. Far from it. Put differently, the argument that impartiality President Jacob Zuma had finally In the past it is has been popular for business is good for business, no longer holds water. Tbeen arrested was fleeting. Footage of in South Africa to remain politically neutral The time has come that the economic risks of violent protests, looting, arson and anarchy for fear of reprisal from the ANC or any of picking sides are less severe than the certain – linked to Zuma’s arrest – shocked the its political manifestations making business demise that will arise from sitting on the fence. nation. The protests turned deadly and even more difficult. While I have never shared Those of us who have the means to make showed no signs of letting up, despite this sentiment, I could at least understand it. a difference have an obligation to use our the fact that the South African National However, in 2021, we have freeways being considerable means to make that difference. Defence Force (SANDF) commenced with blocked, trucks on fire, shops being looted, Speaking more bluntly, we cannot remain pre-deployment processes and procedures. businesses being burnt to the ground, and neutral in times of great crisis and not be ActionSA founder Herman Mashaba, who scenes emanating from our country which culpable in what will follow. has long been outspoken about the country’s produce long-term reputational damage. South Africa has not had a political party dire need to rid itself of the ANC’s rule as Business in South Africa has had to learn capable of challenging the ANC. This is well as his intention to unseat the ANC in how to operate under difficult circumstances. precisely why more people do not vote than 2024, addressed the nation by way of the ActionSA founder Herman Mashaba Consider that some businesses weathered the those who do. The opposition establishment in below statement. – Nadya Swart mismanagement of our economy, crawled South Africa has failed in their ambition and within the ANC has resulted in widespread out of the Covid-19 lockdowns only now to imagination, failing to be anything more than ActionSA statement: violence, destruction of property and our be finished off by mobs of politically driven oppositional in nature. As a matter of logic, I write to you at a time in which our country esteem in the world reaching new lows. looters and rioters. it is intuitive that business would only incur experiences a crisis of anarchy, lawlessness and I write to you to suggest that the events of We can all appreciate that under circumstances the risk of being partial when an alternative looting that flows from the factional battles the past few days need to be a moment that of anarchy, business cannot survive. These exists that offers suitable prospects of being within the ANC. gets people off the proverbial bench and into instances of lawlessness may come and go, a viable alternative. Very few moments in South African politics the game. along with the extent to which they remain ActionSA has been created, not to be a small have offered the same clarity that the past I had my moment that got me off the bench in in our memories. However, make no mistake, opposition party, but rather one that exists few days have provided on the following 2015 when Jacob Zuma fired Nhlanhla Nene, such instances can only increase under to unseat the ANC in 2024. To accomplish perspective: consequently resulting in R500 billion being continued ANC governance. this, we must unseat failing governments South Africa and the ANC cannot co-exist erased from our economy overnight. That was The highest sustained unemployment in the in Johannesburg, Tshwane, Ekurhuleni and in mutual prosperity. the moment I resigned my business interests world cannot be combined with the highest eThekwini this year. Arising directly from the incarceration of and stood as the Mayor of Johannesburg. levels of inequality and our political history former President Jacob Zuma, factionalism Now, you will be pleased to know that I do without anarchy becoming more frequent Read the full article here

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utgoing CEO of the Institute of Race tions – such as through violent protest. Relations Frans Cronjé joined Alec Hogg to unpack the violent anarchy Daily Friend: It’s not a happy picture... Othat has tormented parts of South Africa. Frans Cronjé: But it is the hard reality of a Cronje has been warning the country about government that remains averse to reform the prospect of what has happened this past and is weakening, and losing, ever more week. “Regrettably, we’ve got this call right,” rapidly, its ability to govern the country let he says. When asked what he sees happening alone enforce order. in South Africa, Cronjé noted that “it’s straightforward. More than half of young Daily Friend: Where do you factor Jacob people do not have a job. They wake up every Zuma into all of this? morning, not sure of what the day is going Frans Cronjé: In this case his incarceration to hold for them. They don’t have the dignity has been the spark that set off the powder of labour and earning something. That’s a keg. We advise clients to distinguish be- very powerful social force. Our schools are tween sparks and powder kegs. If it had not rubbish, frankly. About four in 100 kids will been Zuma, it would have been something pass maths in high school – with a grade of else. 50% or higher.” – Jarryd Neves the risk of South Africa’s protests becoming of economic exclusion that you can read Daily Friend: How does this end? By The Daily Friend more violent as their instigators will seek in our labour market absorption data. The Frans Cronjé: There are two end-game In the following Q&A, Frans Cronjé shares out increasingly prominent targets’. On 5 second is failing schools that give the great risks to be avoided now. The first is that the his thinking on the unfolding crisis. October 2020, we warned about ‘the rela- majority of kids no real chance in life. The protests follow the pattern of the many xe- tionship between a weak labour market and third is unchecked corruption, especially at nophobic pogroms South Africa has expe- Daily Friend: Are you surprised at what violent protest action’ and advised clients local government level. The fourth is racial rienced over more than a decade. In other has transpired in the aftermath of the jail- to expect ‘high levels of violence and anar- nationalist rhetoric from the government words weeks of pogroms that spread to all ing of Jacob Zuma? chic protest action’. On 1 March this year, in that creates a climate conducive to ethnic economic centres with high loss of life and Frans Cronjé: Not greatly. We recently sent the aftermath of the budget, we told clients conflict, just one symptom of a callous and severe economic disruption. The second a note to the clients of our Centre for Risk that its implications mean that ‘the risk of failing state. The fifth is inept and poorly is that the security forces shoot and kill a Analysis in which we tracked seven occa- social instability will rise’. Three weeks later, motivated security forces led by people who number of protesters and that that sets off sions over the past 18 months when we had on 23 March, we advised that ‘socio-eco- do not know what they are doing. The sixth a national uprising against the government. warned of the threat of violent anarchy det- nomic stresses may precipitate significant is government policy that, rhetoric aside, Short of that, this should calm over the next onating. For example, on 17 February 2020, social instability and violent protest’. Most is unable to address any of these problems ten days – but in the longer term the only we warned that ‘growing joblessness will recently, on 5 July, we looked at consumer and more often than not exacerbates them. way out of the cycle of violent eruptions will likely translate into greater levels of populist data among poor households and warned There is possibly a seventh as well in media be to sustain much higher levels of econom- politicking and protest action’. On 20 April of what this heralded for political stability. denigration of the official opposition, which ic growth. Otherwise expect this pattern to 2020, we warned clients to ‘factor in further has put people off the perhaps most viable be repeated over and over again, each time the increasing risk of mass looting and vio- Daily Friend: What lies behind the pro- political alternative to the current admin- with greater intensity, until it sweeps the lent protest as poor communities confront tests? istration with the effect that people turn to ANC out of power. growing impoverishment’. On 14 Septem- Frans Cronjé: I think six things, and pos- means beyond the formal political order to Listen to the full interview ber 2020, we warned clients to be ‘geared to sibly a seventh. The first is very high levels address their social and economic frustra- The economic pain of the riots – Mike Schüssler

n this piece, Mike Schüssler looks at the we have concluded that the cost of rebuild is The economic growth impact is not only to impacts of the destruction (both direct in the order of R14 billion. be felt in 2021, but likely to filter into 2022 and indirect) that will plague South Add to that the cost of about 40 trucks (and as well. Early indications suggest that the IAfrica in the years ahead. – Jarryd Neves contents) that have been burnt on the N2 real GDP growth rate for 2021 could be 0.5 and N3 Highways which is estimated to be – 1.0 percentage points lower than earlier By Mike Schüssler* worth R500 million. Coal exports stopped estimates, suggesting that the time needed There is no doubt that the horrific destruc- for just over a week, which would add a fur- to get back to pre-Covid production levels tion of property and looting witnessed pri- ther billion to the cost. Other exports also have indeed been moved out by some more marily in KZN and Gauteng mid-July, will stopped when the harbours were closed. quarters. have a detrimental impact on the econo- However, apart from shopping malls, there mies of those provinces, but also directly on were also numerous other shops, distribu- Indirect Effects the country’s fragile recovery. South Africa tion centres and factories that were dam- An aspect that is also difficult to quantify, has just tentatively started to recover fol- aged in addition to the N3 route being but very real in terms of risk to the econo- lowing the worst recession in 100 years, and closed for nearly a week. Inventories of final my, is the indirect impact of the rioting and the impact of the riots will act as a further goods in the private non-financial sector destruction. Almost all these impacts are hurdle to the economy. Not only the direct were estimated at R634 billion at the end of for the next few years as the results are not impact of the destruction, but also the in- the first quarter by StatsSA. Assessing de- just immediate, but likely to take years to be direct impact will hover with us for some Mike Schüssler is a Consulting Economist struction to be 8% to 9% as in the case of fully realised. We highlight some thoughts years to come. at Brenthurst Wealth shopping malls this would mean a destruc- on these. tion of around R56bn of final inventory. • Fiscal impact Direct Economic Effect tribution of 34%. While info is gradually Some manufacturing plants also closed, While the better-than-expected perfor- Trying to estimate the exact cost to the coming to the fore, we have based a rough and some inventory had to be discarded. mance of the economy so far in 2021 cre- economy of what has played out is near estimate of the direct impact of the devas- South Africa had R148bn of intermediate ated a windfall in tax receipts for the state impossible, as companies are still in the tation on the economy on Business Lead- and R227bn of raw materials in stock at the (mainly driven by the mining sector), the process of calculating losses and different ership South Africa’s indication that 200 end of Q1 2021. damages caused by the riots will lead to institutions report different accounts of the shopping malls had been looted. Using the We estimate that the overall damage will lower taxes being collected. events. KZN’s contribution to the country’s proportion of shopping centres in the coun- be around R60 billion to R80 billion when Click here to read the full article GDP is 16%, compared to Gauteng’s con- try that were affected as between 8% and 9% the flames settle. 10 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS Moral fibre in SA has been eroded – Nathan

teven Nathan, founder of 10X he was swamped by members of his senior So the sort of benefits of democracy from Investments, joined the BizNews cabinet and also by senior business lead- an economic perspective have not been Power Hour to discuss the country’s ers – you know, the CEO of Google and widely distributed. So if we look at all of Slatest trauma. Nathan noted that President Walmart and many others. And he said, the financial and economic indicators, Ramaphosa has, thus far, not really shown a we’re going to fight this together. And I they’ve been worsening over time. And I strong leadership position and that “he hasn’t think that sort of a show of strength [and] don’t think it comes as a surprise to anyone created a platform and given confidence to of unity is definitely a part of what we need that there is large spread unhappiness the various stakeholders that things are in order to give us confidence that there amongst a majority, probably a majority going to change.” The President’s impunity is a credible strategy in place to tackle the portion of the population. And we know he says, “erodes people’s confidence and immediate issue and then also the underly- it’s also the younger population who gives them greater license to do things that ing causes that have led to this. But so far, are more likely to take action if they are they ordinarily would not do if it wasn’t for I personally haven’t seen much, if any, of disappointed. If you’re older, you might sit operating in a society where they see people t h at .” back and just let things go. But when you’re getting away with what they believe is unfair younger, you’ve got more energy, more practices.” – Nadya Swart On whether SA will take the high road or motivation and more to gain by taking the low road towards anarchy action. So I don’t think in and of itself what Steven Nathan on the current crisis “Well, I think that if we look at the data, if we’re seeing at the moment is an enormous “Where does one start? Because things we look at the facts – we know that South surprise. that you thought were significant become Africa has been trending downwards for It’s a huge disappointment that it’s hap- less significant. You know, who cares really 10X Investments founder Steven Nathan a long time. You know, a lot of us sort of pened. And it’s also a huge disappointment what the market’s doing, mental health- point to the last 10 years and we can look at that government wasn’t able to predict any wise, economically, this is really a low point across as someone who is confident. He economic indicators, we can look at – and of this. I don’t know where the sort of gov- in South Africa’s history. And, as you say, almost looks like he’s on his own. we’ve spoken about this before – real GDP, ernment intelligence is in this whole issue you know, hopefully some good does come I think that optics are really important what we call economic output per person, and that they haven’t been able to address out of this. But I think that the President here. It would have been fantastic – not and how that has fallen over 10 years. So it. So I think it’s got a sort of high road and thus far hasn’t really, from what I can ascer- just to see him – but to see a strong, unified even 10 years ago – we weren’t in a very low road. I certainly believe we’ve been on tain, shown a strong leadership position. cabinet. And even in addition to that, I strong place. We still have a very unequal the low road for a long time. I’m not sure And he hasn’t really created a platform and remember during the early days of the society. We know that South Africa is one that we can just say there’s a low road and given confidence to the various stakehold- pandemic in the US, Donald Trump – now of the most unequal societies in the world. a high road, but we certainly haven’t been ers that things are going to change. And I obviously we’ve all got different views on And unfortunately, we haven’t done a huge doing the right things for a long time.” think that’s been quite disappointing from Donald Trump – but I remember quite amount over the last 25 years to improve what I’ve seen. You know, he hasn’t come early on, on the lawns of the White House, that. Listen to the full interview The only way out for SA is economic freedom

he Free Market Foundation’s Chris have led the country into this ery facet of the economy (in some instances Hattingh writes that with such a President Ramaphosa also highlighted blatantly, in others subtly). This state of af- high unemployment rate amidst phenomena such as hunger, poverty, and fairs has steadily manifested to where we are Tthe youth (74.7%) “a sense of hopelessness inequality, as factors contributing to the now, where it matters more who you know and frustration permeates the country.” current spate of looting. Yet he did not ad- politically, and that government must ulti- Hattingh notes below that this and other dress any of the government policies that mately decide how a fixed amount of wealth negative factors will continue to exist in exacerbate, if not cause, these burning is- ought to be distributed amongst competing South Africa until the country becomes sues. Because of an anti-entrepreneurial interest groups. investment-friendly. – Jarryd Neves and anti-wealth creation environment, Busisiwe Mavuso, CEO of Business Leader- many South Africans will feel that inequali- ship South Africa, has indicated that by the By Chris Hattingh ty is a static phenomenon, and that the only afternoon of 12 July more than 200 shop- After more than a year of enterprise-kill- way to take care of themselves is to take ping malls had been looted, and retailers ing lockdowns, and a decade of declining what they can get from others, while they had lost an estimated R2 billion. Rebuilding economic growth, South Africa has been can. businesses, and reinforcing and expanding gripped by violence and looting. Attempt- Citizens are told that, if they do not have supply chains, will take a long time. Ac- ing to give a glimmer of hope, during two as much as someone else, it is always be- cording to KwaZulu-Natal Premier Sihle public addresses, and in his 12 July letter, A member of the SA Police Services cause that other person (or group) has il- Zikalala, as of 13 July, 26 people have died President Ramaphosa said, “We are build- (SAPS) fires rubber bullets at rioters legitimately acquired what they have. Many as a result of the ongoing violence. Gauteng ing up, not shutting down. We will rebuild looting the Jabulani Mall in Soweto. in government, and in the commentariat Premier David Makhura confirmed that 19 our economy and create jobs.” But as South generally, assume that wealth is fixed, and people have been killed in that province. Africans have learned over the last while, icy decisions by this government, policies that it can only ever change hands through mere words from the government can only that discourage economic activity, business- force. There is little to no acknowledgement Read the full article here take one so far. Years of ideological and pol- and capital-formation, and job creation, of the fact that the government controls ev- 11 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS Financial Times perspective: Defending Soweto

South Africans reel from riots, "We are Monday when mass rioting convulsed two on the verge of eating each other." of the most populous and economically im- Jailing of former president lit a fuse to slow portant provinces: KwaZulu-Natal, Zuma’s burning tensions over unemployment and home state and power base, and Gauteng, long lockdowns. which includes Johannesburg and Soweto. After months of lockdowns and amid a By Joseph Cotterill of the Financial Times of devastating third Covid wave, tensions London have come to a boil. As cities are trawled SOWETO - As South Africa’s worst pub- by gangs of looters, motorways and vital lic violence in decades swept Johannesburg economic arteries have shut, as have vacci- and its biggest township this week, Nhlan- nation centres and businesses. Warehouses hla Lux was ready to defend the shopping in Durban, Africa’s biggest port, have been centre he called Soweto’s “last elephant” burnt and looted. With overwhelmed police with his life. often standing by doing nothing, Ramapho- Clad in camouflage and armed with a sa ordered 2,500 troops on to the streets. pistol, the 33-year-old community lead- Late on Wednesday, the defence ministry er guarded the closed gates of Soweto’s called up thousands more, in what is set to Maponya mall with a handful of police and be the biggest deployment since the end of soldiers on Wednesday, a last line of defence apartheid in 1994. against rioting that has left more than 70 Zuma’s jailing was hailed as a victory for dead and devastated Africa’s most industri- Armed soldiers from the South African National Defence Force (SANDF) patrol the rule of law in South Africa, and for Ra- alised economy. Two hundred other malls close to the Maponya Mall following rioting in the Soweto district of Johannesburg. maphosa as he sought to combat graft in the like Maponya have been looted in affected Photographer: Waldo Swiegers/Bloomberg ruling African National Congress and to areas, according to business leaders. unify its warring factions. But the ensuing “We can’t sit back while the township econ- since the end of apartheid almost three de- of eating each other.” chaos — and the security forces’ struggle omy dilapidates further,” said Lux. “The big- cades ago. Such scenes of violence have The immediate trigger for the unrest was to gain control — has fanned criticism of gest mall, that employs the biggest number “rarely [been] seen before in the history of the jailing last week of Jacob Zuma, the the ruling party for presiding over years of of people, is the one left standing. If it falls, our democracy”, President Cyril Ramapho- former president, for failing to attend an institutional decay and its failure to tackle it’s the last elephant.” sa said on Monday. For Lux, it is clear what inquiry into corruption during his nine- inequality. In the past few days, South Africa has come is at stake. “I for one am prepared to die” to year rule. What started as sporadic protests, Read the full article here closer to social breakdown than at any point halt the unrest, he said. “We are on the verge egged on by Zuma’s supporters, escalated on SA leading global fight against strongman rule South Africa is ahead of international trends. fighting for his life after being poisoned. The jailing of Zuma should inspire other de- Strongman leaders and would-be auto- veloping democracies crats understand the danger of independent courts. Before Xi Jinping took power By Gideon Rachman of the Financial Times in 2012, many Chinese liberals hoped the of London country’s legal system could gain some in- The imprisonment last week of Jacob Zuma, dependence from the Communist party. the former president of South Africa, un- Under Xi those hopes have been crushed. derlined a fundamental truth. The survival Zhou Qiang, China’s chief justice, gave a of democracy depends on an independent speech in 2017 in which he denounced “ju- judiciary. dicial independence” as “an erroneous west- International politics is currently disfigured ern notion” that “threatens the leadership of by a plague of leaders who want to govern the Communist party”. China’s campaign to unconstrained by the law. These would-be crush dissent in Hong Kong has swiftly be- strongmen are not confined to autocracies gun to threaten the independence of Hong such as China. They have also emerged in Kong’s courts. countries that hold free elections, such as The destruction of judicial independence is India, Turkey, Brazil, Israel and even the a crucial step in the construction of an au- US, self-styled “leader of the free world”. tocracy — which is why the EU is so con- The difference between successful strong- cerned about legal “reforms” in Poland and men and those whose ambitions are thwart- Hungary. The political future of countries © Zapiro (All Rights Reserved). Originally published in Daily Maverick. ed is, more often than not, the strength of such as Turkey, India, Brazil and Israel may the judicial system. If a ruler can eliminate spiracy theories and denouncing judges. to subvert US democracy were thwarted also hinge on whether the courts are strong the independence of the courts, the door is Populist leaders often dismiss inconvenient by court after court. Even Supreme Court enough to rein in the autocratic tendencies open to the destruction of democracy, un- facts as “fake news”. But in the courts, truth judges that Trump appointed in the hope of their leaders. All four are democracies trammelled corruption and the suppression and accountability still matter. The words of that they would favour him chose to follow that have elected strongman figures who of freedom of speech. But if the courts can Sisi Khampepe, the acting chief justice who the law. display disdain for democratic checks and hold the line, political freedom has a chance. sentenced Zuma, carried real weight: “No By contrast, when Alexei Navalny flew balances. Jacob Zuma was, in many ways, a classic person enjoys exclusion or exemption from back into Russia to challenge Putin, he was In Israel, the court system held firm and strongman leader: charismatic, corrupt and the sovereignty of the laws of the republic. immediately arrested, put on trial and im- corruption proceedings against Benjamin contemptuous of institutions. As president, And Mr Zuma is no exception.” prisoned. When the Kremlin requires it, the Netanyahu went ahead, even when, as he cultivated a close relationship with Rus- The significance of independent courts is Russian courts are willing to deliver absurd prime minister, he denounced the judiciary. sia’s Vladimir Putin. Zuma also used Trum- underlined by the contrasting fortunes of verdicts, such as convicting Navalny of vi- He has now lost office, after an election. pian rhetoric, encouraging race-based con- Donald Trump and Putin. Trump’s efforts olating his parole, when he was in hospital Read the full article here

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12 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS Corruption thrives in a destabilised state avid Everatt notes that SA’s gaping sorrow that the man had fallen so low; for inequality, frustration of the people not in such elevated positions, it was hungry (and jobless) masses and a rare moment of jubilation in the midst of Deven “internal ANC factional tensions a global pandemic that has us locked down, spilling onto the streets” could be a few of again. many reasons behind the recent civil unrest. Protests that had been low key since he was Everatt writes that “hungry people do not arrested on Wednesday night exploded into become violent looters on behalf of better- an an orgy of looting, marching, xenopho- known looters who are in jail. They may bic attacks, arson, truck-burning, stabbing well be available for mobilisation (looting, and shooting, and blockading of roads violence, marching) behind the organisers and freeways (among others) by Sunday. – but it is the organisers that need to be It seemed – and Zuma’s allies and (adult) brought to book, and who must also face children were quick to preach the word – the rule of law.” As the Wits professor that he was so popular and such an object concludes, corruption (already a major of sympathy that a spontaneous outbreak of problem in SA) thrives in a destabilised bloody violence and theft was unavoidable, state with weak institutions. If SA were to and a dark portent if Zuma was not imme- go back there, there would be “no turning diately released. Prescience seemed to have back,” he remarks. – Jarryd Neves replaced profligacy. The stakes were (and remain) exceptionally By David Everatt high. Thanks in part to the commission of South Africans spent most of mid-July © Zapiro (All Rights Reserved). Originally published in Daily Maverick. inquiry into state capture and corruption glued to their news outlets, from established Zuma established and later refused to at- media outlets to TikTok, from streaming rule of law win? had been so assiduously hollowed out un- tend, Zuma is now known to have allowed news to old-fashioned printed words, to see Zuma blinked, with a few minutes to spare, der the nine years of his presidency had the Gupta family, using organised crime just one thing: would Jacob Zuma blink? and handed himself over to police. An hour flexed their new-found muscle. The Con- money-laundering vehicles, to bankrupt Would the country finally get some taste of or so later he was booked into a rather stitutional Court had long held firm, the the state. As has been noted, fish rot from revenge for the state capture, looting, de- comfy looking “state of the art correction- police were rather more wobbly, but despite the head. struction of institutions and threats to the al facility” in Estcourt (which had taken 17 much assegai-rattling by family members country’s democracy their former president years to refurbish). and the Zuma Foundation, into prison he Read the full article here had enabled and championed? Would the The rule of law won. The institutions that went. No ANC leader expressed joy, only

Civil society power will grow from riots: Alcock

G Alcock uniquely straddles the First that I’ve been chatting to and going to – the impact of lockdown… But less the economic and Third Worlds courtesy of being townships in Gauteng in the last week or so. things – the frustration of lockdown, people brought up in a mud hut by political But if you look at Gauteng, where’s all this are gatvol, you know? Gatvol of being locked Gactivist parents in the dirt-poor Msinga stuff happened? It’s happened in the vicinity down, of not being allowed to do their things. district of rural KZN. His insight into our of Zulu hostels, Vosloorus – a big Zulu hostel And I think that the spark that lit the flame civil society and the unrest currently raging – Katlehong Thokoza was always famous for is [that] it responded to this kind of massive in South Africa is therefore unparalleled. the Zulu hostels there in the late 80s when frustration. And some of the blame is Alcock believes that what’s happened in there was a lot of kind of – what they used to about – ‘Zuma never locked us down, Cyril parts of the country over the last few days call – the black on black violence. Mamelodi Ramaphosa did lock us down.’ Having said is a reflection of divides in our country, not Mall was trashed the other day right next door that, I must also say that I’ve said for a while, between races, but between the haves and to the Mamelodi Men’s Hostel. Dobsonville and I believe it, that it’ll last for three or four the have nots. While many theories that in Soweto, next to the Dobsonville Hostel. days, five days. It’s a flash and it’ll be gone. the uproar was planned have been floated, Or it’s close to shack settlements. And yes, the impact will remain. Alcock argues that – while the spark that lit In Diepsloot there are two major malls. The But already in Diepsloot and the unrest may have been planned – the fire one mall was completely untouched and not Olievenhoutbosch, there wasn’t a gunshot was completely unplanned. – Nadya Swart GG Alcock is a Marketer, Author, even approached. And it’s on the southern fired. There was no drama. And part of it was Entrepreneur & Speaker side. And the Bambanani Mall, which is right that the police got to a point where they – I On whether the violence raging in Gauteng next to a shack settlement, had a raging war on mean, the absurdity of it – ran out of rubber and KZN is surprising policing forum and I’ve spent the last two Monday night. I was in the vicinity and it was bullets and ammunition and had to ask for “Well, yes, I think it is a surprise on the one days and nights doing backup in places like gunfire and flames. So I think it’s [to] a large people like community policing forums and hand in the sense of how it’s arrived. I was Diepsloot and Olievenhoutbosch and the extent reflective of the divides of our economic other people to help them, which is a shocker. I thinking back to when we first chatted around surrounding townships and residential areas. classes. And Zuma was a spark to many of mean, that’s a whole other thing – the fact that lockdown when I said that the problem is And it’s certainly not a racial issue. I mean, the Zulu. And I see (kind of aside) a split the police hierarchy or management have not that certain communities just cannot sustain certainly the group that I’m part of is very between ethnic or tribal Zulus and cultural supported the guys on the street. I feel huge lockdown – just in terms of survival and stuff. white, but when we’re going into places like or, you know, Zulus who are urbanised, who sympathy for them, that they’re told they’re And that there’s a breaking point at some stage, Diepsloot, we’re meeting residents associations are much more cultural versus the kind of not allowed to shoot. In some cases, I heard particularly where livelihoods are impacted and black community associations and tribal Zulus. And so within Soweto, you’ll of police using private weapons to shoot back and informal livelihoods, where in many township taxi associations who are saying, have the Zulus who are very tribal and ethnic – because they knew that with their official cases people who were formerly employed ‘Enough’s enough and this is not acceptable.’ and you’ll have the Zulus who are born and weapons they’d get into trouble.” managed to receive some sort of income. This So the real divide is in essence between the culturally Zulu.” has really impacted particularly the lower haves and the have nots across racial divides. Listen to the full interview income people. I think that what’s happened And then again, I mean, if you look at it, I On the theories that the uproar occurring was over the last few days has been very reflective think Cyril was correct around the kind of planned of the kind of divides in our society. tribal nature of this. “So my argument would be that the kind Read also: I hear this rubbish about racial wars and all of If you look at where – and I’m going to focus of spark was planned, but the fire was People will loot or go back to work if that kind of crap. I don’t see anything like that. on Gauteng because that’s where I’m based completely unplanned and that – in essence lockdown continues – GG Alcock In fact, I’m a member of the local community and that’s where a lot of my network [is] – the frustrations of lockdown, the economic 13 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS Will riots change South African politics? as government lost control? It permanent role even after relative calm has certainly seems so. Looters and been restored. rioters have destroyed countless If people become almost entirely reliant on Hbusinesses and caused millions of rands themselves for security, they will ask why worth of property damage. Speaking to they should pay taxes. Private security forc- Bloomberg, the Consumer Goods Council es, which already employ a larger number of South Africa estimates that retailers have than the police, will gain a further immense lost over R5 billion – an unprecedented boost from the events of the past week. And figure. As criminals ran amok, the woefully with the inability of the police to adequately under-equipped South African Police protect citizens and property, the ANC’s at- Service stood aside, barely able to deal tempts at stricter gun control will be dead. with the chaos unfolding in front of their All this sets the scene for groups like the eyes. While the effects are plain to see – EFF and other political movements to come further unemployment, loss of life, property into the fray with their own forces, which destruction – Jonathan Katzenellenbogen has to raise the risk of further rounds of vi- notes that other consequences are still olence and danger to our political process. to come. “This is an economic calamity The violence and looting of the past few days for the country and there will be no easy may soon run its course in KwaZulu-Natal, recovery.” Not only has it undoubtedly hurt Gauteng, Mpumulanga, and North West, the economy, but it’s affected the vaccine but it has a high chance of spreading to oth- rollout at a time when the country is in the er provinces. Because the easy pickings here midst of a deadly third wave. The author at the weekend has to be a turning point. take big steps toward reform. have now been looted, what is left is more questions whether the events of the past Never before in our post-1994 history has The N3, the country’s main route from Jo- difficult to grab. Troops on the streets with few days will indeed change South African there been such large-scale lawlessness hannesburg to eThekwini, was closed by assault weapons, and freezing temperatures politics and perhaps be the turning point across the country. rampaging mobs. That shows the govern- in Gauteng, will help deter the looters. in our young democracy’s history. – Jarryd Our deepest fears of a national breakdown ment lost control. Neves have been elevated to a new level. The last One of the consequences of the upheaval is Read the full article here time that happened was during the ghast- armed residents barricading their suburbs – By Jonathan Katzenellenbogen ly years of apartheid in the 1970s when the a sure sign of how low trust in the state has Politicians stand between South The spate of rioting and looting that began government cracked down and refused to sunk. Militias are bound to take on a more Africans and competent civil service Communities were saving grace during riots livelihoods were destroyed, the ty South Africa (BUSA) for a 24-hour cur- and re-asserts that the present lockdown under-equipped South African few in affected KwaZulu-Natal and Gauteng curfew is already restrictive and counter- Police Service stood by while looters looting hotspots. BUSA is calling on the productive as is, and should be converted to Ahelped themselves to stolen property. The government to exercise extraordinary pow- a voluntary recommendation. army, eventually, was deployed. But by ers and confine people to their homes for “A curfew inevitably raises the problem of then, it was already too late. In fact, many as long as possible, presumably in the hope who or what is deemed an essential service regular citizens stood up for themselves, that a curfew will keep criminal elements during such a time. Such a determination defending what’s theirs and protecting the away from the streets and allow state secu- can however not be made by central plan- wider community. Reports of taxi drivers rity services to secure supply routes. It ar- ners; the economy is an integrated affair, coming together to stop rioting and defend gues that this is the only way to get food and and all members of the production network shopping malls have been praised, while in other basic supplies safely to communities. contribute in important and unrecognised KZN myriad communities banded together However, such a curfew has enormous ways to restoring order and supplies.” to protect their towns. Below, Sakeliga’s CEO drawbacks and risks and can greatly desta- Furthermore, a 24-hour curfew should be Piet le Roux writes that the curfew (put in bilise the situation. rejected in favour of maximum flexibility place as part of the Covid-19 lockdown Sakeliga CEO Piet le Roux “Communities have shown that they need for communities to respond to their unique measures) should “be rejected in favour to be mobile, organised, and flexible in the risks and circumstances. of maximum flexibility for communities By Piet le Roux face of these imminent security threats and “State security services have evidently been to respond to their unique risks and The saving grace during the disastrous loot- highly uncertain situation. Supply chains, reliant on community assistance in con- circumstances.” The non-profit organisation ing that has ensued in KwaZulu-Natal and moreover, are not simple matters, but com- fronting pressing threats. Confining com- has called for state security to support Gauteng over the last week, has been the plex intricate networks that require flexi- munity members to their homes is likely community efforts against looting and to measures taken by community members in bility and the freedom to move around and to make communities more vulnerable and “work constructively with community safety protecting their businesses and property. respond to the events as they unfold,” says impotent.” forums and local business chambers in an Business organisation Sakeliga therefore Piet le Roux, CEO of Sakeliga. Read the full article here effort to restore stability.” – Jarryd Neves notes with concern the call by Business Uni- Sakeliga opposes curfews and lockdowns,

The BizNews Shop Everything from Investing like Warren Buffett to Cyril Ramaphosa’s audiobiography by Anthony Butler (Read by Alec Hogg) 14 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS Anarchy odds are ominous – Magnus Heystek

renthurst Wealth Management sense and now people are realising the need to founder Magnus Heystek doesn’t diversify at least a significant portion of your mince his words on a good day, assets outside of South Africa. This applies to Blet alone on another day of suffering for property investments, this applies to equity South Africa. Magnus has been advising investments or bonds. That’s the golden rule, diversification and offshore investments you cannot have all your eggs in one basket. for more than a decade with many local What’s happening now in South Africa is a fund managers in disagreement despite his worst-case scenario – anyone could’ve worked investment thesis proving correct. This time out 10 years ago that there are many scenarios of crisis is of serious concern and offshore for South Africa and the worst-case scenario diversification has never been a more is about where we are now. There’s just total prudent strategy with many of the world’s chaos and mob rule.” largest banks downgrading the rand over the course of the week. – Justin Rowe-Roberts On whether SA is going the anarchy route “Regrettably so. If a smart guy like Clem On much of Afrikaans community being a step Sunter says its a 50/50 then I get worried. ahead in this time of national disaster Those are not good odds when it comes to the “The Afrikaans community and especially the long-term planning for you and your family. farming community have been exposed for Those are very bad odds. A 50/50 means that a very long time, over the last 20 to 25 years. this morning – I don’t live too far away from On the incompetence of the government in 50% of the time it can be right. If that is your They’ve been saying, whether you agree or not, Diepsloot – and I heard the bullets flying and the midst of a national disaster view then you should be externalising 100% of that the farmers are being victimised, isolated the gunshots and the sirens. Last night we “We need some action from the government. your liquid assets if it’s possible. I don’t want and left defenceless. They were obliged to form heard the helicopters so we knew there was You cannot have a situation where the ports are to be in a 50/50 scenario when it comes to me their community security groupings, they problems in Diepsloot again. Our staff that being closed. The Durban ports are partially and my family, my kids and my grandkids. have prepared better, they’ve linked up with live in Diepsloot did not come to work, we closed. The petrol refinery has closed down. Those odds are becoming very ominous.” WhatsApp and community radios – they’ve said stay away until the end of the week. The That produces one third of our petrol in the had a running start on what’s happening in supermarkets in our area were empty, the country. My wife tried to fill up our cars like other communities now.” Woolworths, the Spar, the Checkers – they many people – no petrol, no bread, no milk. Listen to the full interview were empty. Not that I would know, but I’ve That’s in Gauteng.” On whether this living environment is the new been told, the Tops liquor stores in Broadacres Read also: norm for South Africans in Fourways was looted and ransacked. That’s On diversification and investing in South Africa “I hope not. I hope that’s not the way we not the way you want to live, it’s simply not in these times of turmoil Duduzile Zuma under scrutiny for allegedly inciting violent protests, riots are going to live in this country. I woke up the way. “Don’t do things in panic mode. It all makes “If you loot institutions, we all feel the pain”

n this thought-provoking piece, DA worst a bit ‘naughty’, but forgivable and un- Foolishness of revolutionaries Shadow Minster of Mineral Resources derstandable and permissible. The idea that It is the foolishness of revolutionaries James Lorimer looks at the looting that ‘we’re perpetually oppressed, we should be everywhere that they think they can destroy Irecently rocked South Africa, and looks allowed to loot’ is firmly established in the the bits and pieces that they want to destroy at the severe consequences it has on SA. psyche of ANC and EFF members, no mat- and that everything else will go on as before. “It is the foolishness of revolutionaries ter what their economic circumstances. It won’t. everywhere that they think they can destroy That’s returned and bitten the whole coun- It’s not as if the people who are looting sud- the bits and pieces that they want to destroy try. People who work in sacked stores will denly stumbled on the idea themselves. It’s and that everything else will go on as before. lose their jobs. People who work in facto- been common practice at the upper eche- It won’t.” Lorimer also notes that looting ries to make produce to put in those shops lons of politics for as long as the ANC has is seen by too many as a “social faux pas” will lose their jobs. People transporting that been in power. It’s been mirrored and in- – something insurance will pay out for. produce to shops that no longer exist, and tensified by the EFF. The idea that looting But it’s not as simple as that. It’s a vicious who have had their trucks burned, will no is permissible or at least understandable, is chain that will destroy livelihoods. “People longer have jobs. given succour by academics, establishment who work in sacked stores will lose their Those who still have money to buy neces- journalists and the commentariat. jobs. People who work in factories to make sities will find they no longer have shops in The consequences of the corrupting of in- produce to put in those shops will lose their their area because those shops have not reo- stitutions and their perversion for personal jobs. People transporting that produce to pened after they were sacked. They will have gain have been apparent for some time. Of shops that no longer exist, and who have to travel to find shops. That travel will cost course, there’s no crime intelligence to fore- had their trucks burned, will no longer have them money, so they can buy less when they stall the ‘democratic shopping’ at Game or jobs.” – Jarryd Neves James Lorimer is the DA Shadow Minister find a shop. Or, irony of ironies, they will the Dunlop tyre factory. How can there be of Mineral Resources have to shop from the spazas owned by the when the entire purpose of the organisation By James Lorimer foreigners whose businesses they also want has been perverted to cover up for official The media and social media have been it won’t. to burn and loot. corruption and to spy on political enemies? alive with pictures that convey a sense of the Every lazy, useful, voter-mobilising notion Businesses are institutions just as much as The ordinary SAPS have little capacity or sheer normality of looting and destruction used by the African National Congress for government services are. Businesses and in- willingness to do their job. Stories of cor- in South Africa. years has been exposed by the destruction stitutions and infrastructure depend on law ruption in the force are legion. Is it surpris- Footage of a portly man trying to fit an and looting since Saturday; the notion of and order for their existence. Those who ing with Police Commissioner Jackie Selebi oversize TV screen into the back seat of a perpetual struggle, either class struggle or tear them down because they feel they are having ended up in jail? Famously, he closed small car, or the large ladies repacking shop- struggle against whites or Indians or bosses. not benefiting, or who normalise opposi- down specialised police units, including the ping bags stuffed with stolen goods as they The idea that it is permissible or even ad- tion to them because they are ‘revolutionar- drug squad, and, tellingly, was jailed for ac- waited for transport away from a stripped mirable to steal from or destroy the estab- ies’, are facing a sharp lesson in what life is cepting bribes from drug smugglers. That Jabulani Mall, excite amusement rather lishment, be it business in the local mall or like without the institutions that have been set the tone. than anger. Looting is seen by too many as a employers or institutions (they sacked the painstakingly built and held together by the minor social faux pas, a crime without real sweat and smartness of others. Life is not blood bank) has had its expression in what Read the full article here victims. Insurance will cover it, after all. But is happening. Looting is not seen as bad, at going to be better for them or anyone else. 15 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS Gift of the Givers on SA’s looting locusts

t is often during times of great adversity So the first call was from hospitals. Then that we witness the extraordinary within 48 hours – on chat groups – our calls strength of the human spirit. Dr Imtiaz flooded with one request; ‘Our babies need ISooliman founded the Gift of the Givers milk.’ And some babies need a special type Foundation in 1992 and has spent the last of milk depending on the type of conditions 29 years dedicating himself to providing they had because nobody was prepared for humanitarian aid and disaster relief. this and nobody had supplies. So that was the BizNews founder Alec Hogg spoke to Dr second request. By the third day, those old Sooliman about the crisis wreaking havoc people, people who are ill, 84 years old, 74 in South Africa right now. Dr Sooliman years old; ‘We’re hungry. We have no food in shares an incredibly insightful view of the our house.’ And then all at the same time, very four categories of persons who are fuelling wealthy people, expensive homes and ordinary the riots and the looting. What really hits people and all types of people; ‘Where do we home, though, are his stories about ordinary access basics like milk and bread and those South Africans who have united to defend kinds of items?’ And then the clammer just themselves and each other where the grew. People wait in desperation; ‘What do government has dismally failed its people we do? How do we get it? When do we get it?” and its citizens.” – Nadya Swart On whether there’s an upside to all the chaos On rumours that his warehouse was looted “There’s a great upside. You know what? South “Well, actually, it’s not true, number one. And Sooliman gave up his medical career to pursue the field of humanitarian aid, founding Africans are not going to be used again to secondly, it’s actually not my warehouse either. the Gift of the Givers Foundation in 1992 be divided along racial lines and any kind of It’s a warehouse that was used by a person who issue that tears us apart, whether it’s race or was a volunteer – a business person who used there. We only came to note it ourselves when “Yes, it’s already coming, you know. When anything else. The sentiment and the narrative to work with us in the Port Shepstone and we saw the post on social media and we saw it started on Sunday, it was OK. Monday it from all groups is coming that we must stand South Coast area. He used to do deliveries our signage in that warehouse. We realised was fine. And then suddenly the calls started together. And what is absolutely encouraging and distributions. He would call us and say, they had put a sign inside the warehouse, but coming in. Strangely enough, from private is when the culprits started calling in their ‘People, I need [you] here, can you help?’ actually it wasn’t our warehouse. The tragedy hospitals first and then public hospitals saying, numbers, there’s a few of them saying, ‘We So we would send him supplies in advance. of this all is that he had served the people so ‘We have two nurses on duty, our patients are want to help.’ Now they’ve taken a big knock. He would park it off in that warehouse and well and yet people found it appropriate to hungry, we can’t get oxygen to them. What do Many of the companies, the malls have been within a day or two he would deliver it. come and loot the warehouse and eventually we do? We don’t have enough staff. Can you destroyed, shops have been destroyed, chain Now, unfortunately, in January this year, the they even burnt it.” help? There’s no place, we don’t know where stores have been destroyed. It is those same volunteer, his brother and his father – all three to access food. Everything is closed. There’s no chain stores calling and saying, ‘Look, tell us succumbed to Covid. I lost all three of them. On the impact that the current looting crisis transport. The roads are closed. What do we what you need.’” And as a result of that, we couldn’t use the is going to have on the demand experienced do?’ Medical workers calling and saying, ‘We warehouse anymore. We had no supplies in by the Gift of the Givers Foundation can’t get to work. Our patients are suffering.’ Listen to the full interview Organised civil society becoming a reality

ollowing days of rioting and On what he’s hearing on the ground from it is in the local space that change has been looting in South Africa, reports of KwaZulu-Natal, a deeply affected province happening for some time. A localised tax South Africans pulling together in “It’s devastating. The aftermath of this is -go revolt, taking over the running of the wa- Fcommunities became common. Joining ing to live with them for a long time – and ter systems, going to court [and] removing BizNews to discuss this phenomenon in other parts of the country – because the councils. There’s going to be a lot more of was Wayne Duvenage, the CEO of OUTA supply lines are cut off. The distribution and that. The local elections are going to tell us (Organisation Undoing Tax Abuse). He getting food to the markets, in and out of a lot – especially with this independent can- commented on the camaraderie seen in ports is closed down. It’s going to have a didate movement and and structures that afflicted areas, noting that this assistance devastating impact on the economy – from are being set up – so that local elections, “is in so many South Africans, coming to fuel to food, infrastructure and then re- we believe, will be moved out a bit further, the fore in times of disaster and need.” building. This is going to take a long time. [which] gives time to really take from this Duvenage also noted that now is the time for I always try and find the good out of this. learning and solidify that. South Africa to ask why this happened. “If Nobody can really say we needed this, but We’ll get a lot of understanding of where we can take from this, the journey forward what will happen – and what has to happen this country is going to go, politically, at the to fix what is fundamentally wrong, I think – is that I sincerely believe this is the time to local government elections. We also have to there’s going to be a good road ahead.” – ask why. How did this happen? We under- CEO of OUTA Wayne Duvenage have electoral reform because the party list Jarryd Neves stand there is a political agenda [and] there system and people electing people to repre- was crime. fundamentally wrong – the electoral reform sent them in parliament, in constituencies, Wayne Duvenage on communities coming How do we prevent this from going for- that is required, education, building, put- that is missing. They’re in power yes. Peo- together ward? I think [that if] we just look back, we ting competence into government – I think ple might not care, but they’ve got the purse “I think we do see this voluntary assistance can understand that since our new democ- there’s going to be a good road ahead. Good strings and they know now – and I think in the mindset and the psyche of so many racy, we really haven’t paid attention to ed- growth coming from this. But if we don’t Cyril knows he has to move now with ur- South Africans and that comes to the fore ucation, health, safety, poverty alleviation, seize this opportunity to do that, then we gency to change things – because when we in times of disaster and in need. We’ve got job creation or closing the the gap between will become a banana republic.” get government right, government for the some really good organisations, like Gift of rich and poor – there’s inequality that ex- people, then it’s going to go well. Otherwise the Givers but it’s really interesting to see ists. And yet, we had every potential to be a On how upcoming local elections may re- we’ll have government by the people, for how communities have mobilised them- thriving, prosperous nation with everything flect community/society thinking the people – and that’s also starting to take selves. It’s easier to do with social media. that we have going for us. Our politics got “Local elections are coming. I think local shape. Organised civil society is becoming a But the spirit, this humanitarian spirit, that in the way. Looting got in the way, self-in- elections are going to show the mettle of reality in this country now.” comes to the fore so often is just so reward- terest got in the way. If we can take from communities and society, because there is Listen to the full interview ing and needed in times like this.” this the journey forward to fix what is so a difference between national and local and 16 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS Fight isn’t over for township mall owner

he McCormick family are well- we knew exactly what was going on. known property moguls in South On the ground at the moment, things are Africa. Their property portfolio a lot more calm. We still have a big threat Tconsists of listed and unlisted assets, mainly at our flagship mall in Tembisa which we malls and shopping centres around the opened in 2020 under the pandemic. We rural and township areas of South Africa. are still facing a big threat there. Otherwise It’s listed assets are held through a real- things have seemed to calm down, I feel the estate investment trust called Exemplar, tide has turned. In terms of Exemplar, we which is an illiquid counter with a market have had 5 malls that have been damaged to capitalisation of approximately R3bn. It is varying degrees.” controlled by the family. Jason McCormick, chief executive of Exemplar, joined Alec On how the rural area properties have fared Hogg on the BizNews Power Hour to tell “I love the rural areas. I absolutely love the an extremely sombre tale. A number of the people and developing them because that’s McCormick’s properties have been looted, where you make the biggest difference because vandalised and all but destroyed. The fight people aren’t having to spend a R100 on a isn’t over, he says, as the family will look round-trip to town. The rural areas have been to rebuild and come back stronger as the amazing, they have formed human chains, communities in which they operate depend they have protected us in these areas. They on it. – Justin Rowe-Roberts On Exemplar REITail, a JSE-listed company On the chaos that has unravelled over the haven’t allowed themselves to get caught up in controlled by the McCormick family past week all of this. The bulk of our assets still remain Jason McCormick on the McCormick property “We listed a portfolio of 20 properties in “South Africa has been turned on its head, if I in these areas.” portfolio June 2018. The majority of the developments have to be honest. Never in my wildest dreams “We’ve been at it for 39 years since next March are still done through the unlisted entity could I have imagined what has happened. The On whether the McCormick family will be as McCormick property development, always although we have started with our first two onslaught that we’ve faced, what we believe to reinvesting or pulling out focused on the rural areas, particularly the developments in Exemplar itself.” be ex-military, its a coordinated attack with “I’m an African. I believe that the project homelands. My dad was the first guy to really serious armaments across the portfolio, I’m that we’ve got changes lives. The reason we’re focus on them. He did what we believe was On how many shopping centres are within speaking to you now with maybe a couple driven to do what we do is we fundamentally the first broad-based BEE scheme in 1987. the broader McCormick stable of hours of sleep over the past few days. It’s change people’s lives where we operate.” We’ve always been focused on the homelands “In terms of developed over time, there are been a hell of an experience, something we because in the early days the townships were 68. 23 are owned by Exemplar and outside the never expected to happen. Where we currently too hot to develop. We’ve now been focused fund we have a couple that aren’t in the fund stand and why I’m happy to speak to you is on the townships since they became more for various reasons. In terms of Exemplar, it’s that things are now a lot more under control. Listen to the full interview peaceful and we find ourselves here today.” 23 currently.” I wasn’t confident to speak to anymore until

Incapable SA govt set this tinderbox aflame

iet Viljoen, who Alec Hogg often but what it definitely is is a continuation of refers to as ‘the most rational person an incapable government. And that is why he knows’, joined the BizNews Power there is such massive inequality in the country, PHour – with his first comment being that it which is this tinderbox, which has now been is super hard to stay rational in times like set aflame.” these. Viljoen believes that the civil unrest that has been raging in parts of South Africa On the possibility that the incapable South over the last few days may be a watershed for African government is not going to learn from this country and that “things could either this and instead double down on its ‘capable change for the positive or for the negative, state ideal’ but things will have to change.” Viljoen says “That’s why I say [that] I think we’re at a that the thing that struck him most was watershed because if that happens, then I the complete absence of government, and think things are quite negative. If the incapable that it is this continuation of this incapable state doubles down and tries to improve what government that has led to the massive it does, it just makes things worse. And it has inequality. The crux of the issue, Viljoen been doing [so] for 25 years now. Whereas, if states, is that the disempowered portion of it uses the opportunity to withdraw and starts the population has just become bigger as thinking about what policies could be changed a result of lockdowns and other associated to create growth, to create employment, to measures to fight the pandemic. Viljoen create jobs, to help business do those things also provides an alternative perspective and images of what’s been going on in KZN sides – so it’s very hard to jump out of that pot – then I think it’s a change for the positive. on communities pulling together to fend and parts of Johannesburg. And, you know, I unless you move to a completely different new And that’s why I’m saying I think we’re seeing for themselves. While he admits that it think it’s a cause for deep reflection. It’s hard pot somewhere else. So it’s not easy. But I think a watershed here.” is a positive thing for communities, he to just make a knee-jerk reaction and say, ‘It’s what we have today is a result of an incapable notes that it will lead to large parts of the this or that, or once you do this or once you government, because I think, you know, if you On whether there’s an upside to all of this infrastructure falling away if it starts to do that.’ In terms of the funds I run, I have look at the images and the videos of what’s “I think longer term there could be an upside. replace the state. – Nadya Swart done nothing. I’ve actually consciously not been happening on the computer, at least Right now, where I sit, no – there’s no upside in done anything at all because the environment initially – the complete absence of security this sort of thing. If you destroy a large portion On what SA has gone through in the last week is just so uncertain.” forces, the complete absence of government of one of the bigger municipal centers of the “Well, I think the first comment would be giving reassurance and attending to the matter. country, there’s no upside to that.” to say that it is super hard to stay rational On comparing civil society in South Africa to The absence of government completely was in times like these. It’s just upsetting. It’s the ‘boiling frog syndrome’ probably the thing that struck me the most. Listen to the full interview horrendously upsetting to see the videos “It could be, although it’s a pot with very high And that could mean many different things, 17 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS Damage to SA will be lasting - Brian Pottinger

ormer Sunday Times editor Brian The incumbent, President Cyril Ramaphosa, platitudinous statements of good intent. This Pottinger writes that “the insurrection was widely hailed on his election as leader rule-by-remote has born a bitter fruit. will no doubt be suppressed, my of the African National Congress in 2017 Shortly after my appointment as Editor of Fprovince will return to its fraught peace as the saviour of the nation, a Mr Fix It the Sunday Times in 1996, I made a point of but the damage to South Africa and the Extraordinary with a luminary history in the engaging the newly-elected ministers in the country will be lasting.” This article was first trade unions, business and the negotiations ANC Government. Invariably I was asked published on unherd.com. – Jarryd Neves that led to political emancipation. His what I perceived to be the greatest challenges promises of a New Dawn struck a resonance facing the infant government. Always I By Brian Pottinger with a public desperately tired of the collapse replied: the loss of the nation’s precious skills in public morality and the accelerating race and investment resources. The caution was The province of my birth is burning. Looters, towards a failed state. Tragically, it has thus obviously lost in the translation. using the excuse of the incarceration of far proven a false dawn. The public anger is Under the guise of redistributive economic former President Jacob Zuma, have laid an now palpable and dangerous. programmes, the ANC ushered in the unimpeded trail of violence, arson, assault I knew Cyril Ramaphosa when he was policy of Black Economic Empowerment. and damage across KwaZulu Natal, traditional Chairman of the publishing company in Whatever its good intentions, it turned into home of the Zulu people. Brian Pottinger is an author and former which I was Editor and later Publisher of the a one-way flow of money extorted with state Armed volunteers mount barricades at the editor & publisher of the South African South African Sunday Times, then the largest sanction from private or public purses into entrances to my village while youngsters Sunday Times. He lives on the KwaZulu circulation newspaper in the country. I believe the hands of a monstrously avaricious new on trail bikes scout through the perimeter North Coast him to be an honourable and decent man, but elite. The proceeds were instantly monetised cane fields. There is no available food or fuel not an effective one. He showed an almost and consumed in a style that would put a and the chat groups buzz with an incessant President Jacob Zuma was ordered to serve obsessive desire to avoid confrontation, a Byzantine court to shame. This has not gone flood of posts about destroyed buildings, 15 months in prison for refusing to appear preference for working through third parties unnoticed by the people burning the malls burnt cars and roaming mobs. The State is before the Commission of Inquiry into State and, later, a fierce aversion to taking tough today. entirely absent. Capture — ironically a commission appointed decisions if it would affect party unity. More To gain control of the state, the ANC followed For the first time, ordinary South Africans, by Zuma himself to investigate allegations of than once he privately confessed that he was a policy of “cadre deployment” of party bomb-proofed through decades of tumult, widespread corruption. a master at dancing on eggshells. faithful to occupy every level of government. appear afraid for the future. The response from political and even The hard decisions, like weeding out the Unable to even manage its own party affairs, The democracy bought into existence 27 criminal forces, some of their leaders once criminals in his party, were outsourced to they had no hope of managing a modern state. years ago after a negotiated truce between office-bearers in the ruling African National the Courts, the Commission of Inquiry into Everywhere there was dysfunction, collapse armed contestants, only some of whom were Congress, was swift. They have mustered State Capture, the media or political hitmen and corruption, the burden again borne most white, is facing its biggest challenge. Now it under the banner of something called Radical in his own party. Thus, he retained a serene, heavily by the poor. Across the spectrum, the is not only the disgraced Zuma that is in the Economic Transformation which translates in surreal aloofness amid the growing signs of internal party factionalism was replicated by dock. It is also the current President, Cyril method to the violent appropriation of wealth chaos, division and policy-failure around him, the “deployees” in the State Departments. Ramaphosa. and in consequence to utter desolation. It is a restricting himself largely to sepulchral public The immediate spark for the conflagration more ambitious form of looting than the one utterances on safe-zone topics like gender- was when, on 29 June this year, former currently on our television screens. based violence, Smart Cities, Covid-19 and Read the full article here

Zulu mobilisation cooked up by the ANC – Mbeki

s South Africa slowly comes to the police. That was his strategy for allaying of them supported De Klerk in introducing terms with the recent widespread the white fears. Of course, the whites believed the changes that he introduced. Of course, looting, there have been many that they are Zulu bloodthirsty savages who there was those who disagreed but that was Aexplanations for why this has happened have to be dealt with [by deploying] the army. their right.” and who is behind it, with fingers pointing That was the intention. He knows there was in every direction. Some have attributed no such ethnic mobilisation. On the list of Zuma’s supposed supporters it to Zulu or ‘ethnic mobilisation’ and an Cyril knows how to manipulate the white “Number one on the list: Thulani Dlamini, ‘attempted insurrection’. However, Moeletsi population. He plays on their prejudices. He the guy who was ambassador to Japan. He Mbeki rejects these theories, saying they manipulates the black population as well. He has already said he’s actually working with are ghosts that the ANC pull out when the was caught on camera a couple of years ago. the government, so he doesn’t know where party is in trouble. He gives an interesting He was on a campaign in Polokwane and this his name comes from, but he’s top of the list take on the matter and believes that while old lady in the townships said to him that she of these 12 insurrectionist organisers. Jacob Zuma’s incarceration was certainly the is not going to vote for the ANC anymore I don’t think he has been arrested. What is very spark, the actual explosion was inevitable. for service delivery reasons. [Ramaphosa] clear is that the strategy of the government is “Cyril was targeting the whites – the white thought the camera was far away and wouldn’t to tell the population that this is a conspiracy. prejudices, let me say. He wanted to tell the hear his reply, he told her, “you know, if you It is not because of poverty. This is an old trick whites that they are these Zulu bloodthirsty don’t vote for the ANC, the Boers will come Political analyst Moeletsi Mbeki the National Party used to use. The National savages, but he’s going to deal with them back and take the land back”. He’s a real racial Party used to say our blacks are happy, it is using the army and the police. So that was opportunist who manipulates both the whites add up to Zulu support.” the communists who are creating trouble. his strategy for allaying the white fears,” by playing on their fears and prejudices and The ANC is saying our blacks are happy. It’s Mbeki says. – Linda van Tilburg the blacks by playing on their fears and their On a third force or it being an attempted either the Zulus or – then they realise that’s prejudices. By the time he withdrew his ethnic insurrection not quite kosher (the Zulu thing) – they say, On the riots not being an example of ethnic mobilisation, the damage had been done. The “These are the ghosts that the ANC leadership “oh, it’s insurrectionists.” mobilisation whites had believed him so he didn’t need to pulls out whenever it has problems. In the “Well, I was the first person to attack Cyril continue with it. I don’t think he expected past, there was a third force, which was one On taxi associations helping communities for saying this is ethnic mobilisation. There’s people like me to raise a lot of noise about it. of the ghosts that the ANC used to explain a “There are so many players in SA who have no such thing but it was deliberate because he The spark came from where Jacob Zuma lives, whole lot of things which was really directed so many different motives. I don’t know what has since withdrawn it. In my view, Cyril was whether it’s Zulu or not Zulu. It came from at the Afrikaners. It was a code word for what the taxi owners’ motives are, but there are targeting the whites, the white prejudices, let where he lives, which is his own province. the ANC perceived as Afrikaner rejectionists, many people who have many motives.” me say. He wanted to tell the whites that they That doesn’t make ethnic mobilisation. For and it called them the third force. These are are these Zulu bloodthirsty savages, but he’s him to get support from his province doesn’t code words, but did the Afrikaner people Listen to the full interview going to deal with them using the army and add up to ethnic mobilisation. It doesn’t even object to democracy? Of course not. Most 18 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS We are all in SA to be part of the solution

0X founder Steven Nathan is upbeat a large part of South Africans experience have a lot at stake within the industry, which about South Africa’s prospects going and feel. We can all hopefully put our heads is fantastic to see.” forward after the chaotic events together and address problems that we know 1that unfolded a fortnight ago. Nathan that have been there. It’s not as if the problems On international investors concerns and BizNews founder Alec Hogg talked are new but I think there was complacency “It’s always been a tricky one. It’s quite a hard about rebuilding the economy after the from all levels – from government down to one and I guess it’s always your reference national disaster, which will fuel further business down to communities, we’ve all got point, I don’t think we’ve done ourselves a unemployment and inequality in an our own stuff to worry about. Hopefully some lot of favours in the last 10 years at least. It’s already unequal society. Nathan suggests good will come out of that and we are seeing so quite interesting, in 1999 I went to Australia that entrepreneurs will play a key part in many of these amazing stories of communities when I was a banking analyst with Deutsche restoring and creating jobs in order for the protecting themselves.” Bank and funnily enough Kokkie Kooyman economy to get back on its feet. – Justin and Piet Viljoen were with me. We went there Rowe-Roberts On the work done by the Taxi industry to help to go see the Australian financial landscape. restore law & order It was ahead of South Africa by 10 or 20 Steven Nathan on the events that unfolded “It’s a great showcase for us all to understand years, they had 4 big banks and 3 large life “A week is a long time in our lives in South Steven Nathan is the founder and former the benefits of empowering people and companies. We wanted to get a sense of where Africa. A week ago we were talking about CEO of 10X Investments bringing people into the formal economy South Africa might be heading. We spoke to this and if you recall I was asking what is giving them a meaningful stake in South a lot of the big financial services companies, the catalyst – was it politically motivated or balance of power lie, does it lie within the Africa. We always talk about to trying to one of the questions we’d ask them was ‘would is it just really opportunistic people who are Zuma-aligned faction or does it lie within get a more inclusive economy and trying to you invest in South Africa?’ – Australians are unhappy and there was an opportunity there the Ramaphosa (reformist) camp. I think that get more people to participate in all levels of quite conservative and this was 1999 but they for them to gain something without a sinister this is another data point, hopefully, that tells the economy – in an ownership level, in an all unequivocally said no, they didn’t even political force at play. What we’ve learnt is that us the Zuma faction is quite weak and that employment level and the taxi industry is a ask about the business case. They said that there has been a political force at hand here, they didn’t get a lot of support in their efforts wonderful example of that. The taxi industry the perception of South Africa in the 1990s there was some form of insurrection and I to destabilise the government, the country, has seen an opportunity with government’s was so poor, it doesn’t matter if there’s an think the good part about that is it seems as the infrastructure. I think that’s a positive. lack of ability to provide a meaningful excellent business opportunity – they said if it has failed quite dismally. Another positive is that hopefully all South transport system. The taxi industry has they couldn’t even take that to the Board.” The faction fighting within the ANC, for a Africans have woken up, or are more aware stepped up and they do an incredible job long time we’ve been saying where does the and more in-tuned into the challenges that benefitting so many South Africans. They Listen to the full interview

Toyota feeling “very uncertain” about future

loomberg recently reported on the ufacturing operations jeopardises the com- consequences last week’s rioting pany’s future sustainability, as it embarked and looting has had on the already on a recovery mission following the Cov- Bweak South African economy. Over 3,000 id-19 pandemic. shops have been absolutely destroyed, with Even a temporary closure of its Durban 200 banks and 150 post offices suffering a plant and the Durban harbour negatively similar fate. More worryingly, an estimated impacted Toyota’s ability to fulfil its export 150,000 jobs are now at stake, with the mandate. Other areas had to satisfy the de- South African Property Owners noting mand. that the total cost to the economy could Disruption of the important N3 highway be R50 billion in lost output alone. A between Durban and Johannesburg also large investor in South Africa, Toyota has meant that Toyota South Africa is unable to channelled plenty into the KwaZulu-Natal deliver vehicles to customers in Gauteng. (KZN) province. The recent civil unrest has Imai said the recent spate of riots have a thrown a spanner in the works of the global significant impact on its plans to further company’s plans, Toyota’s regional officer invest in South Africa, especially when it for Africa, Toshimitsu Imai expressing his comes to its alternative energy cars. concerns. According to MyBroadband, Imai Toyota South Africa highlighted that it is noted that the safety of Toyota employees busy with preparations to launch its first is a “key priority” for Toyota. However, he locally produced “new energy vehicle” later also said that it “left Toyota feeling very this year. uncertain about the future of its business The Toyota Motor Corp. badge is seen on the company's Accessible People Mover (APM) In January, Toyota South Africa Motors in KZN”. eThekwini Municipality mayor mobility vehicle. Photographer: Akio Kon/Bloomberg announced it would be manufacturing the Mxolisi Kaunda will be meeting with Toyota new Corolla Cross in South Africa in the in order to give the company assurance that This comes after Toyota’s regional officer Unfortunately, he said, the incidents in the fourth quarter of the year. the unrest has been stabilised. This article for Africa, Toshimitsu Imai, wrote to Kau- city have “left Toyota feeling very uncertain The model reveal followed the company’s was first published onMyBroadband . – nda to express their concern about the vio- about the future of its business in KwaZu- announcement in 2019 that it was invest- Jarryd Neves lence and looting in KwaZulu-Natal. lu-Natal”. ing R2.43 billion in the production of a new Imai said a key priority for Toyota is the “Our manufacturing operations in the passenger vehicle in South Africa. By Jan Vermeulen safety and welfare of their employees, their south of Durban were forced to close and “We will be manufacturing the Corolla The mayor of eThekwini Municipality, Mx- families, and the communities within which have remained closed since Monday, 12 July Cross in both right- and left-hand drive for olisi Kaunda, will be visiting Toyota tomor- they operate. 2021. We are uncertain as to when it will be South Africa and the rest of Africa right row morning, 21 July 2021, his spokesper- “The safety and harmony within this eco- safe enough for us to resume operations.” here at the Prospecton Plant in Durban,” son has told MyBroadband. system is a fundamental value we strive for The uncertainty caused by the unrest in Toyota South Africa Motors CEO Andrew “[Our mayor will] give them assurance that because it enables us to be a successful busi- KwaZulu-Natal means key deadlines may Kirby said at the time. the situation has stabilized and law enforce- ness and thereby contribute to the commu- be missed. This, in turn, will hurt future ment is being deployed in all hotspot areas nities and economies within which we can prospects of Toyota’s local operations. Read the full article here including industries affected,” he said. operate. The closure of Toyota South Africa’s man- 19 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS Where to from here? Heystek, Baissac answer

he recent looting and civil unrest wasn’t raised here. I don’t have family here. about you. You can’t get the kind of house in parts of South Africa has raised My kids are South African. It’s already an you have. You don’t have the kind of weath- a number of concerns. Listen in agonising consideration for me – consider- er you have in SA. You also don’t have the Ton this excerpt from a BizNews webinar, ing how wonderful the country is and how sense of nationhood – traumatising as it is featuring Brenthurst Wealth Management’s high I was when I came here in 2000-2002, or not – that you have in South Africa.” Magnus Heystek and Claude Baissac of with the promise that was represented by Eunomix. Together with Alec Hogg, the the new South Africa. I’m looking at it per- Alec Hogg on staying in South Africa group concentrates on what to do with your sonally, because I have small children and “It’s very personal and it is very complicat- money and where to invest it. – Jarryd Neves I’m concerned about their ability to have a ed. If you are in the white community in career and futures in this country. South Africa and are not an entrepreneur, Magnus Heystek on staying in South Africa I’m a French citizen, so I have options. I then you must realise that your prospects “I would tell people to be honest about will say this, however. What is rational at are certainly not enhanced because of all their view of what’s going to happen. If you gets control. I think they must start with law the individual level can become irrational kinds of reasons – and you can argue that have the chance to externalise your career and order. We talk about it all day long, but at the collective level. If all the people in the one way or the other. But you’re not going and even your family, considering what’s it has to be practical. We haven’t mentioned middle and upper-middle class leave South to have as good an opportunity in South taking place in South Africa, I would prob- that three or four weeks ago, the general Africa, then it becomes a self-fulfilling Africa as you might have in a less racially ably say that you should take that chance [to manager of Rio Tinto was shot and killed prophecy. There is no centre to hold any- defined society. emigrate]. Even if it’s just for five to seven and they declared a force majeure. more. Then all we’ll have is extremes. The That’s the first part. If you are, however, years and if things improve, you can always That was already the first inkling that extreme rich – who will benefit from a cro- prepared to be entrepreneurial [and] take come back. But to say ‘don’t go’ would be a there’s something wrong in KZN and that ny capitalist system and government cor- responsibility for your own future. I don’t great disservice to those people – if things something is brewing. Government has ruption – and the extreme poor who rep- think you can find a better country in the turned out to be as bad as it can turn out. done very little about the burning of trucks resent the majority. That then leads to the world. The risks are high, but the rewards What does the ANC need to do to change in Mooi River for many years, for example. kind of explosions on the scale magnified are also high as well. It starts from the basis someone like Claude and my view about The government has allowed this absolute to what we’ve seen. It’s so difficult and we of where you are. If you’re an accountant SA? As Claude mentioned, that depends on wave of lawlessness to fester. We’ve now know of so many South Africans who have and you want to be an accountant – you the ANC and the cabinet. seen that they were totally impotent in con- left looking for better lives elsewhere and want to work for somebody else – you Unless they don’t change their strategies trolling this uprising. If Ramaphosa doesn’t then realising that the grass is greener there. might have a better career elsewhere. How- [and] get hold of law and order in this start firing some cabinet ministers and hav- There’s a there’s a counterpoint to what ever, if you are somebody who is prepared country, my recommendation to a young ing some balls, as Brian Pottinger wrote on Magnus has been saying. In South Africa, to hustle, to get out there and find new family like that, is to go [live abroad] with your website, you seriously have to worry we still have extraordinary quality of life. I partners – who you might even not even my blessing, because there are bigger forces about where SA is going to end up a few can assure you that what you gain on one think about as being partners today from at play than just the individual’s right and years from now.” side of the balance book, you lose on the different cultures and that – well, this is a loyalty to the country. Probably, I’ll say yes, other side of the balance sheet. Living in great place.” go. But, there could be a turning point one Claude Baissac on staying in South Africa Europe, America and Australia is not easy day – and I’m not so sure it’s gonna happen “It’s a difficult question to answer. I’m not a living. These societies are machines and you Listen to the full interview soon – but let’s just assume that the ANC South African citizen. I wasn’t born here. I have to find ways to fit in. Nobody cares Taxi industry a force to be reckoned with

s the Head of Department for But you can’t help noticing the destruction Economic Development at and the looted massive furniture shops that the uMgungundlovu District, are now just… They’ve been burnt. There’s no Athe devastation that swept through other way to describe it. They’re black shells Pietermaritzburg and its surrounds last of nothing. So, yeah, I think it’s hit everybody week was even more acutely felt by James in the solar plexus, especially from a business Martin than most. Describing the wreckage, point of view. Some of them feel they can Martin says the looted shops are now ‘black bounce back. Some of them feel that it’s a shells of nothing.’ Of particular significance bridge too far now to come back.” is the way in which Martin describes the power harnessed by the taxi industry to On the debate around whether it was just protect and defend the businesses in and thuggery or whether it was orchestrated around Pietermaritzburg. An uplifting, “I have to be careful how I answer. Obviously albeit surprising shift in perspective of the I’m not speaking on behalf of government. I’m taxi industry. Martin explains that there is a not a spokesperson for government. I think I’m new layer of skills coming through across the just giving an opinion, which is my personal South African taxi industry landscape, and opinion. I think when this started and we let that alongside this rising level of business what we thought was a puppy dog out of a acumen, there is a responsibility in the cage, I don’t think we realised it was a kraken. commercial environment. – Nadya Swart Commuters wear protective face masks as they queue for taxi vans in Pretoria. It was something that, once the floodgates had Photographer: Waldo Swiegers/Bloomberg opened, would be hard to squash – judging by On the damage that’s been done to how easily a shop can be looted. For most of Pietermaritzburg and the surrounding district businesses have been looted. Some have been town itself, I went through during the days of us, it’s something that never occurred to us. “Well, we do have the statistics. I don’t burnt. Mooi River on the freeway, obviously, the treachery, and it was a war zone. Your car But I think it is something that can happen have them at my fingertips, but I can say a number of businesses there have also [been couldn’t drive through the streets because of physically – really easily. You open the door that each town except Camperdown in this damaged]. the rubbish and the debris on the roads. And and you take out what you need to. That’s district was damaged severely. Richmond And then in Pietermaritzburg itself, a couple people were loitering, scavenging through how simple it is. It’s easier than shopping if was almost flattened. The area to the east of of major shopping centres, especially in the whatever was left. It really was a war zone you look at it like that.” Pietermaritzburg, there are smaller towns black townships, were destroyed and burnt to at the time. I’m happy to say today driving there – the businesses were almost flattened. the ground with, I think, only four shopping through it – it’s obviously been cleaned up In Howick, it’s a town most people may have centres still standing out of, I estimate, and it’s safe and there’s police presence. And Listen to the full interview heard of, we’re estimating [that] around 40 probably double that number. So the centre of there is a sense of calm that’s returned. 20 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS Brutally honest Open Letter to Ramaphosa

oreigners often confuse “South African Stop treating poor black South Africans like Speak” for rudeness or arrogance. A voting fodder. Enough with the failed service bit like the Dutch, people from the delivery. It’s disgusting and unnecessary. Fire FSouthern Tip of Africa lack the diplomacy people who don’t do their jobs. Make that gene. They genuinely prefer straight and phone call. Read the goddamn Riot Act. Start plain. Uncoded. Ever since the transition delivering services. Show you actually give in 1994, however, much was left unsaid. For a damn how people live and whether they most, despite its record of idiotic economic can get clean water and drive safely on our policies, corruption and misgovernance, the roads. So enough with the KFC and t-shirts. ANC was given the benefit of the doubt. It’s revolting. After the chaos of the past week, however, Stop treating white South Africans like the that generosity has disappeared and long enemy. Make saying “WMC” or “1652” a hate suppressed anger uncorked. Because, in their crime, like the K-word. It’s actually every bit hour of greatest need communities whose as insulting, and it’s flung about carelessly rates and taxes keep the national wheels by ideologues who just are just plain racist. rolling, were left to fend for themselves. Enough now. And tell the Human Rights Those they paid to protect them simply Commission to do its job. They’re supposed disappeared or stood idly by watching to look after all of us. They don’t. the methodical, fearless plundering. As a Stop treating coloured and Asian South result, many in the previously silent and Africans like second class citizens. They mostly isolated majority have found each also suffered under apartheid. Stop with the other – and their collective voice. Their “Do you want productivity, Mr President? Do you want economic hierarchy of disadvantage rubbish. It’s divisive ‘gatvol’ factor has scaled a new peak. This success? Do you want social cohesion? Don’t you understand that the and revolting. Quotas are a no-no. Dump anonymously produced Open Letter to vast middle want all of these things? Do you want to stay in power? them. Everywhere. Sport included. Cyril Ramaphosa captures the zeitgeist. It’s not actually that hard. Treat us all with respect. Equally. As Admit we have a tribal problem. Zulus moved It is circulating on social media to almost to the ANC when they thought one of their universal applause. – Alec Hogg citizens. Who defended you when it really counted. And importantly, own had a shot at the Presidency after years in too many cases to mention, the best thing for you to do is just to of the Xhosa Nostra. They were right. He did. Dear Mr President, get out of the way.” And look what he did. The attempted coup was You now have the perfect opportunity to do nothing but Zulu insurgency and resentment the right thing. Everyone knows this was an at having lost power, and the chance to feed attempted coup, and you’ve said as much, just stood together to protect life, property, and about doing the right thing, and showing at the trough again. Read your history. Just in different words. democracy. And in an important way, we did everyone that you really are grateful that be honest about it, and move on. It was civil society who came to your rescue. the job the Army and Police, after years of we stood as one to defend democracy, and Stop with the dual legal system. We are Ordinary people, living ordinary lives, across mismanagement and cadre deployment, could that you do have respect for us all, no matter supposed to have just the one. the income, gender and race divide, showing not do. We protected the legitimately elected who we are. And that you really care about you that South Africans are one. We stand government. You, in other words. something else other than power, and ANC Read the full open letter here together when the odds are against us. We So here’s some advice you may care to hear unity.

SLR: South African media first needs to change

he events which nearly brought political allegiance and beliefs. I was quickly both the Daily Moron and Beijing24 were South Africa to its knees are tragic vindicated: the UK Guardian’s coverage of the before then within touching distance of enough without arbitrarily skewed events trended on Twitter as being ‘a response the social justice model beloved by their Tto downright false reporting of the facts. to social injustice’. New Frame, a woke start- awful peers in Now This, Vox, Daily Beast This article by Simon Lincoln Reader looks up operating out of Braamfontein, arguably et al, wherein its highly politicised reporters at the manner in which the trauma endured shafted the pooch first by perpetuating the refer to countries as ‘projects’ and ordinarily by South Africans has been misrepresented entirely selective and contentious narrative condemn the measures communities protect to the world by mainstream media. The – but even by the Guardian’s usual standards themselves with as narrow and non-inclusive. BizNews team may be small, but we are this was repulsive. But this shifted: in his weekly attempt to ape in no way ‘keyboard warriors’ – as Reader Not without irony. This coverage occurred in Hugo Chavez’ ‘Alo Presidente’, Beijing24’s indicates by referring to BizNews founder the same week that the Guardian presented Kommissar on Monday wrote: Alec Hogg’s interviews. Again, the critical – as a ‘scoop’ – the festering corpse of the “If there was ever any doubt that the importance of the media’s role is thrust into Russian hoax once again, claiming ‘evidence’ majority of South Africans, irrespective of the spotlight. In order to get as close to the they had found ‘appeared’ to suggest Vladimir race, economic status or culture, are good events on the ground, multiple interviews Putin had personally authorised infiltration citizens, who want a peaceful life for them were conducted with individuals that into Trump’s 2016 campaign. and their children, it should be put to bed actually were in ‘the war zone’. From these Not only has this crap been comprehensively by the events of last week.” interviews, one thing is very clear – while debunked, and its lead reporter Luke Harding This is true. It also happens to be what the South Africa certainly has a growing host unceremoniously humiliated, but there are ‘far-right’ AfriForum, frequently a target for of problems to address, we are blessed with inalienable facts about dates in this theory ridicule by Beijing24’s reporters and that incredibly brave and resilient citizens. – that are just wildly inconsistent with what wizened little sheriff Max Du Preez, has been Nadya Swart actually happened. It speaks not only to the saying for the last decade. Simon Lincoln Reader works and lives in incompetence of the Guardian’s editor, Kath The least spoken media battle of 2021 has By Simon Lincoln Reader London. You can follow him on Substack Viner, but to the concern that the absence of a been the scorn that arguably the finest and figure to hate in Donald Trump has wrecked most accomplished reporter of his generation, Back in the day when there were still adults didn’t answer any questions – firstly, because the Guardian’s (and others) prominence – so Glenn Greenwald, has blitzed upon prestige in prestige media, you could speak of South I didn’t know enough and, secondly, because I they are reduced to squeezing out innuendo media. He has attacked the Guardian for being Africa in other countries with the conviction suspected that the ideologues contaminating and supposition. an establishment shill. that reporting would largely substantiate what prestige media would rush to frame the Insofar as South Africa’s coverage of last you understood to be true. But last week I riots and the looting according to their own week is concerned, an amusing realignment: Read the full article here 21 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS Modernising Zuma’s rural traditionalist ANC

akkie Cilliers, founder and former is where Jacob Zuma took it, to a modern, Executive Director of the Institute urban, non-racial party. And that challenge for Security Studies (ISS), is a well- remains inherent to the ANC today.” Jknown Africa analyst and the author of a ground-breaking book, titled Fate of the On whether his analysis still aligns with the Nation. The book, which President Cyril reality of the events that occurred in KZN Ramaphosa reviewed as “Incisive, bold and and Gauteng last week sobering. A revealing forecast and a call to “Yes, it does. South Africa has the largest action” was written in 2017 and explored inequality and unemployment globally, and three alternative scenarios for the future of there is only one thing that can change that South Africa: the divided nation, ‘Bafana over time, and that is more rapid economic Bafana’ muddling along and Mandela growth and employment growth in the for- magic. BizNews founder Alec Hogg spoke mal sector. We can grow our informal sec- to Cilliers on the BizNews Power Hour to tor, but because South Africa, by compara- see whether these scenarios still hold true, tive standards, has a much smaller informal particularly in light of the violent riots that sector than most countries at comparable spread through KwaZulu-Natal and parts rates of income and so on – it is only em- of Gauteng last week. Cilliers believes that ployment growth in the formal sector that what we’re looking at is a splintering of the ment. But the basic theme that South Africa ment plan, is just blatantly unrealistic. But eventually reduces inequality. I actually just ANC and that we face significant challenges is heading for a significant change – firstly that did require a deep and fundamental today released – what we refer to as – an in terms of a coordinated vision of ‘the in Gauteng, and with the national elections reform to get there. Of course, at the time, ISS Today on security sector reform, where security architecture’ of South Africa. in 2024 – holds, as does the main challenge Covid was not on the cards, but many of I looked at the challenges that we face in President Ramaphosa’s biggest challenge, that I sketched out, which is reform of the the self-inflicted challenges that we face in police intelligence and the military and the according to Cilliers, is modernising the ANC. So I had a look again at the book re- the country were clearly on the cards – par- leadership thereof and set out a host of is- ANC from the rural traditionalist party cently and read through some of the chap- ticularly around corruption, the challenges sues that South Africa needs to engage with that it became under Jacob Zuma’s rule. – ters, and I’m quite happy that the framing within the ANC. At the time, I made the on managing the inevitable instability and Nadya Swart that I provided still holds.” distinction between – what I refer to as – a protests that we will be faced with for a traditionalist faction within the ANC and number of years to come.” Jakkie Cilliers on whether the three sce- On applying his academic analysis to the the reformist faction. narios sketched in his book still hold reality in South Africa At the time, Nkosazana Dlamini-Zuma was On whether a split in the ANC is close “I think, generally so. The analysis in the “We use a forecasting platform known as generally seen as the leader of the tradition- I think we’re looking at a splintering of the book – Fate of the Nation – has held up the International Future’s forecasting plat- alist faction, and the main challenge – and it ANC. The party is a shell of its former self. very, very well. The largest error, in retro- form. So, I converted the political scenarios remains true today – is that; for Ramaphosa So even if Ace Magashule, who’s now the spect, was that I overestimated the potential into economic impacts. And we were, at the to survive and for the ANC to flourish, the leader of the RET faction (whichever), were of, particularly, the Democratic Alliance time, making some of the basic arguments ANC needs deep and fundamental reform to decide he has got no real support base... to maintain the trajectory that its previous that South Africa can do much better. But that not only takes deals of the corruption leader had set it on. And opposition politics the idea of heading for 5.4 growth rates, and the patronage, but modernises the par- Listen to the full interview in South Africa has been quite a disappoint- which is what was in the national develop- ty from a rural traditionalist pathway, which Open letter: White privilege or hard truth?

ollowing the chaos of the riots intelligent he will take notice but he lacks is nothing short of subliminal racism aimed and looting in KwaZulu-Natal and the emotional security needed to run a at offending Africans and crafting a deceptive Gauteng, it’s fair to say that many household, never mind a country. It is what message that seeks to promote their opinion FSouth Africans have been left with a bitter it is, Cyril lacks in leadership ability,” says MJ over the masses masked as some open letter taste in their mouths. One such citizen took JORGENSEN. but void of any truth. In reality, it sounds like pen to paper in an anonymous Open Letter Naas Scholtz comments, “Awesome letter a call to Ramaphosa to tow the white line of to Cyril Ramaphosa – currently doing the – the sentiments of the people – ANC’s and thinking and generally pro minorities.” rounds on social media. EFF’s and BLM’s excluded. Hear the voice of JohnMname responds: “If whites and most As Alec Hogg writes, “In their hour of greatest the 50 million ‘others’. Bravo, give the writer of the population abhor crime and looting, need, communities whose rates and taxes keep a Bells.” does that make them privileged? What’s your the national wheels rolling were left to fend “Brilliant and points out everything normal point other than to be racist?” for themselves. Those they paid to protect hard-working people are saying every day,” “Oh. The ever expected and standard racist cry them simply disappeared or stood idly by says Chris. “Get rid of the inept corrupt cadre when the truth manifests,” adds Braveheart. watching the methodical, fearless plundering. ministers, look to Singapore, not Nigeria, you “It’s 27 years of ANC misrule, theft, plunder As a result, many in the previously silent and never know people might start voting for you and destruction that makes many many South mostly isolated majority have found each other President Cyril Ramaphosa. Photo again, comrade.” Africans of all persuasions want to puke.” – and their collective voice. Their ‘gatvol’ factor Credit: GCIS Tracer ZA says, “The sad thing is this country Ichabod Crane adds, “Ag, shame, came too has scaled a new peak.” really needs a coup. Just not the scum of the late to the mall, to grab a 65’ TV? My heart From cadre deployment and failed service Equally. As citizens. Who defended you earth trying to take over, we already have scum is bleeding for you.” delivery to emigration tax and xenophobia, when it really counted. And importantly, of the earth running this circus. Brilliant letter, “1) Cyril won’t read it. 2) The president does the writer leaves no ANC stone unturned. in too many cases to mention, the best thing but our spineless knob of a president doesn’t not act by himself. Decisions are made by The mysterious author even suggests that for you to do is just to get out of the way.” give 2 schitts about anything but the ANC.” the ANC collective. Well, they are not going Ramaphosa makes saying ‘WMC’ or ‘1652’ a Understandably, the letter has received its fair “I haven’t read something as good as this; it to read it either. 3) Expect no change then. “hate crime, like the K-word. It’s actually every share of attention (both for and against) across shines the light on everything that’s ridiculous ‘Gatvol’ will just have to remain that,” says bit as insulting, and it’s flung about carelessly social media, and as usual, South Africans are and pathetic in this country, more specifically, Harry Roper. by ideologues who just are just plain racist,” not pulling any punches. You’ll want to grab the ANC,” adds Stifmeister. they write. a seat for this, dear reader. “This letter smacks of racism and white Read more comments here The letter ends with: privilege. Makes me want to puke,” says “Do you want to stay in power? It’s not Comments from BizNews community members Kabza. Alec Hogg: Cyril’s unaffordable actually that hard. Treat us all with respect. “Best letter Cyril will ever receive. If he is ALB Translation & interpretati agrees. “This appeasement for looters 22 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS Magnus Heystek: How did SA get here?

eekly, Magnus Heystek joins grants Alec Hogg as the BizNews Power “I share those sentiments. That’s exactly Hour market commentator. what government cannot do – to double WAlways full of insight, Heystek comments down on what they’ve already been doing – on the recent civil unrest in South Africa which is cause to, by and large, the massive – and how it may affect your investments. unemployment, unhappiness and anger. It Listen in on the in-depth conversation, with was all just a compendium of of problems the Brenthurst founder speaking about the which caused this uprising, in my view, and benefits of investing your money overseas. because of social media today, a message like – Jarryd Neves that gets transmitted instantaneously across multiple platforms and there’s an uprising.” Magnus Heystek on investing in South Africa “Everybody is now focusing on where we On the threat of companies disinvesting from are as a country right now? How did we get South Africa here? – which is a whole debate by itself. And, “The letter that struck me as very ominous how are we going to get out of it and what was the letter by Toyota South Africa. If you needs to be done? Now, one cannot just simply know a little bit about the Japanese culture, dismiss that South Africa will never become they are not confrontational and threatening. a failed state. That would be quite foolish and They don’t want to embarrass people – all short sighted. If you’re saying, “my scenario those cultural traits of Japanese. But for them planning involves the following A, B or C,” © Zapiro (All Rights Reserved). Originally published in Daily Maverick. to write a letter like that and it gets published How does it affect the investment decision to the Durban municipality saying, “guys, we making? What can you do with the assets that brand names because of the cost structures. attacked and it attracted a lot of unfair are very close to pulling out of South Africa.” you have or the assets that you will earn in the Our clients have been very comfortable with criticism. They got it totally wrong – said That to me is a very dire warning that, if it’s not future? It’s a wide-ranging debate, looking at our approach. It’s not being panicked, not it was emotion and that I’m unpatriotic. It handled correctly...I mean, can you imagine the various ways to plan for a very uncertain being selling or alarmist. We’re just simply was not – it was getting good returns for Toyota pulling out of South Africa – they are f utu re .” saying that you’re a global citizen and you my clients. Our clients – and I have got a a major investor. That would be the signal to cannot keep all your money in one country. number of messages recently – say thank you other companies. They might just reconsider On investing your money overseas It was not about politics in the early days. for externalising such a large portion of our the operations in South Africa and that will “We’ve been trying to convey that message What intrigued me about what was happening portfolio. We now see what you mean and lead to a cascade of foreign investments pulling to our clients – whom we consider to be elsewhere was Wall Street, Silicon Valley, the that story has not changed. It’s a pity that so out of the country. We have to consider these global citizens – for a long time. As a small phenomenal innovation taking place in the many large companies with massive, vested issues and the way government deals with company we, 10 years ago, set up our own United States, Israel and in Switzerland. I was interests were basically spinning a different it, going forward, is incredibly important.” Global Balanced Fund to give our clients very attracted to those investments because I story all day long. Their clients are paying exposure into the global markets – at a very saw what was happening, personally. Based the price today.” low cost. That fund is now up to R1.5 billion purely on statistical outperformance, we Listen to the full interview and doing extremely well – beating the bigger should invest offshore. Of course, we were On the ANC wanting to create more social Businesses have been very resilient – Shapiro

s is customary for a Monday, happened. But it still doesn’t bring confidence where I say business should come in. That’s David Shapiro shares his pearls back. We’ve got to start doing things that make where the voice of business should come in of wisdom on the BizNews Power people hopeful, the same as we were in 1994. and say ‘we’ve had enough’.” AHour. This discussion unpacks a variety of And I’ve said this many times on your show, interesting political and financial stories there was a very strong class in 1994 until they On the Chinese government’s crackdown on in the headlines. From the way forward were enticed by the trappings of capitalism Big Tech and its effect on the Naspers stable for Cyril Ramaphosa and the ruling party and the desire to become super wealthy.” “We don’t know when this is going to end. to JSE-heavyweights Naspers and Prosus, When the Chinese authorities are going Shapiro explains how political agendas On the ‘prescription for the future’ to step down. So it’s not only on the pay can be burdensome for business. The “The prescription is change, very similar system, they’re going systematically through conversation wraps up with South Africa’s to what we’ve been saying – that this hasn’t businesses. The latest, the one that spooked largest food producer with its latest saga worked in. These are my words now – to us, has been the education story because in creating more headaches for the once high- keep going down the same path with the China, it’s very important for children to get flying Tiger Brands. – Justin Rowe-Roberts same people around the same table is not a good education so that the government going to work. And the same ideology. It’s not decides which universities they go to.” David Shapiro on the aftermath following ‘the going to work. You have to throw that away. I was brought up in an apartheid government. Listen to the full interview week of shame’ I was born in 1947. The nationalist government We have to take a different direction. That’s “I don’t know where to start because we are came in in 1948 and started to institute not quite sure where this is leading to. I read change. Throughout my growing up period, two very telling articles in The Economist. I we were the pariah of the world. We were read in the Financial Times too. I’ve been looked upon with contempt wherever we reading in other periodicals how people have went, people would attack us on the policies. responded to this and the concern. What really I don’t say we defended it, but I mean we concerns me is that there is a call for change. lived through a very difficult time. I never The Economist, in one of the hardest pieces thought I would see a time again where we I’ve read, put blame on everyone and say that were the pariah, where people looked at us the dream of 1994 is probably over. I said in with such contempt.” a comment that they’ve eulogised the end of the dream. I think what government has to do On restoring confidence in the economy now is to step back and say – ‘Ok, this is what “You can start to put in police and you can the world thinks of us. How do we change it?’ start to do all of these things now, after it’s all Visit the BizNews shop 23 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS Riots: Google identifies alarming search trends

As parts of South Africa crumbled under pressure brought on by looting and rioters, panic ensured. Malls went up in How to make a bomb smoke, small businesses were destroyed and sadly, over 200 people lost their lives. Citizens took to the streets, defending People began googling the phrase ‘how to make what is theirs – something the government and defence forces (police included) failed to do. Emulating the turbulent a bomb’ in early July 2021 with a second peak times that gripped SA during the riots, are the Google search habits. Through Google Analytics, Charles Smith of ShaIzwe around Thursday 8th July, then on Monday Communications illustrates how alarming search terms such as “how to make a bomb” and “molotov cocktails” popped in 12th July. the week of civil unrest. Other search terms, including “gun”, “firearm” and “pepper spray” also became more prevalent Molotov cocktail in the violent week. – Jarryd Neves Molotov cocktail trended in KZN on the 23rd April 2021 and again on Thursday 8th July By Charles Smith* Keywords such as “self-defence guns”, “firearm”, “protest”, “Durban protest today” showed a dramatic increase in searches, which With the intensity of the looting in South was expected. Africa increasing from about Monday 13th July and continuing for about a week, people Pepper spray showed an increase, specifically took to Google to search using a number in Northwest, Mpumalanga and KwaZulu- of concerning keywords such as “Molotov Natal. Another keyword ‘buy guns’ and topics cocktails”, and “how to make a bomb”. around firearms increased 350% in searches. Google Trends is a free service that reports on how often a particular search term is entered The topic around Firearms had a 350% increase into Google, relative to the total search volume in searches over a period of time, and across geographic regions. • Charles Smith is the director of ShaIzwe A Google Trend keyword will have a value Communications of 0 if the search term or keyword has a low volume relative to previous searches, and 100 Read also: if it is trending, ie it is experiencing an increase Ex-security agency, ANC members in the average number of searches. aligned with Zuma allegedly behind civil unrest It’s not about poverty or unemployment: Alcock

hat drove numerous South Have a look at the 2019 general household Africans to loot, pillage and survey, only around 12% of our population plunder? It’s no secret that live in informal dwellings (one measure of Wthe country deals with seriously highest poverty), the rest live in formal dwellings. unemployment rates, a poor education Most townships have become suburbs with system and is one of the most unequal a thriving and successful middle class. I societies in the world. Below, author GG have written extensively about the massive Alcock, asks “is the cause of our unrest informal economy which employs or gener- poverty and unemployment and inequality? ates incomes for millions, offset that against Maybe, but I believe that the biggest issue the “formal” employment figures and then is a culture of lawlessness. This lawlessness unemployment is not at the ridiculous fig- is epitomised by corruption without ures quoted, which ignore anyone who does consequence or trial by the rich.” – Jarryd not have a payslip. Lots of studies point to Neves this but walk through a Shoprite or Pep or mall in a township or rural area, take a drive By GG Alcock through any township if you want confir- mation. As I read the hand wringing commentary In Hans Roslings amazing book Factful- about the causes of the latest unrest being ness: Ten Reasons We’re Wrong About the poverty, inequality, and unemployment, A woman carries items past a 'no work' sign in Johannesburg, South Africa, in this file World – and Why Things Are Better Than with solutions including Cyril’s suggestion photo. Photographer: Nadine Hutton/Bloomberg You Think, two key points relevant to this of paying a paltry R350 monthly unemploy- storyline are pertinent. The one isthe fear ment grant, I wonder how true this is. Is the but that’s not why we saw what we saw un- most sophisticated crime, we know we will instinct – in essence we pay more attention cause of our unrest poverty and unemploy- fold. It’s that we have a lawless society, let’s get away with it, so we continue to do more to scary things, and ignore those that are ment and inequality? Maybe but I believe call it for what it is. People in cars loading unlawful behaviour. not as scary or I guess ignore the good news that the biggest issue is a culture of lawless- TV’s, bakkies with fridges and washing ma- Mozambique, Lesotho, Zimbabwe have and focus on the bad news. How many good ness. This lawlessness is epitomised by cor- chines on the back, trolleys full of alcohol, much higher unemployment than SA, but stories have we on social media and the me- ruption without consequence or trial by the we have seen the images, please don’t tell do you see the same behaviour by the poor dia shared, vs the horror stories? How many rich, the jumping of red lights by taxis and me that is unemployment and poverty, hun- and unemployed? No, you get the corrup- images of community solidarity, residents’ actually us all at some stage or another, no ger and need! In fact I will put it out there tion by the top dogs, but the same levels associations recovering looted goods, peo- number plates, bribing the metro with “cold that I will bet that fewer poverty stricken of crime, unrest and looting do not exist ple sharing and caring across racial and drink”, driving home after a “few” drinks, people took to the streets and looted than among the poor and unemployed! economic lines have we seen or shared? petty theft with no consequence, smash and well off people. Judging by their clothes and And to add to it, let’s be real about real How many stories of well-off people, the grabs at the robots with no action, just a big what they stole, probably a sure bet actually! poverty, the kind which has no food on growth of the middle classes, the spread of danger sign, hijackings with another hijack- Let’s cut to the chase, we are a lawless so- the table, where you live in a shack with infrastructure in townships and rural areas, ing hotspot sign. ciety, all of us, rich and poor. We expect if no running water, where you shiver from the shrinking of real poverty, do we read That’s it isn’t it, people maybe frustrated we bribe a cop, or steal a cellphone, or jump cold at night. That kind of real poverty, not about South Africa, vs the sob stories? by lockdown, thirsty for that drink, unem- a red robot, or steal PPE money, or get a the wish I had more type, is experienced ployed or just less money in their business, rigged tender, from the most basic to the by probably only 10% of our households. Read the full article here

24 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS Lesson from riots: You’re on your own, baby!

ith over 300 people dead, the lessons from what happened in the past their stations and had to be protected, as well riots that gripped the Gauteng fortnight. The Economic Freedom Fighters, as resupplied with ammunition, by the citizens and KZN provinces are among which makes no secret of its revolutionary they were supposed to be protecting. Wthe most deadly the country has ever aspirations or its willingness to attack At no stage did the SAPS take the most seen. As malls were set ablaze, shops were physically its opponents and to scapegoat basic actions against the looters, a security destroyed and gutted, as looters ransacked minorities, is one such group. It will feel expert pointed out to me. The two most viable businesses, both big and small. As all this disappointed at not being able to seize any weapons for mob control are water cannon occurred, the police and government sat advantage from the unrest and will vow to and tear gas. Rubber bullets are way down to one side, watching the chaos unfold. It’s do better next time. the list. ordinary citizens who stood up against But the main lesson that we all need to take “If you want to clear out an enclosed area the violence, guarding the suburbs and/or is one of life and death. These events are a like a shop or mall, a single canister of tear businesses from opportunistic criminals. stark reminder that in terms of the physical gas is all it takes. Disregarding water cannon While valiant and admirable, it’s also safety of you and your loved ones, as well as for the moment, in all the hundreds of shots remarkably sad – why should citizens the preservation of your property and tools on television, did you see even one tear gas have to stand up and protect themselves? to earn a living, you are entirely on your own. canister thrown?” As William Saunderson-Meyer writes, Follow William Saunderson-Meyer on The perpetually avuncular President Cyril The other unlikely “protectors of democracy” “when confronted, the government rolled Twitter @TheJaundicedEye Ramaphosa — a Financial Mail columnist were the taxi mafia. After decades of using over and played dead. In several KZN towns, this week describes him as having “a good assassination and arson to eliminate the SAPS barricaded themselves into their occasional granite outcrop. heart” — has shown with his government’s competitors and to wring concessions from the stations and had to be protected, as well as It’s a storm that has irretrievably changed orders to the SA Police Service to keep a low government, the taxi bosses were momentarily resupplied with ammunition, by the citizens the contour of the South African landscape profile and avoid casualties, that all citizens cast as heroes when they intervened, out of they were supposed to be protecting.” What’s but already we pretend that things can be as are not equal. There is an African National self-interest, to prevent looting during the more, this all happened in the middle of they were before. They can’t and they won’t. Congress ranking to the value of life that, later stages of the unrest. a proposed law from government, which What has happened will substantially affect not coincidentally, follows the reality of its It was a disquieting reflection of where lies would effectively ban firearm ownership for everyone’s future, including those that were empowerment policies. In decreasing order the real balance of power and credibility of self-defence. “It is madness or a calculated completely bypassed by the looting, burning of innate human value are ANC cadres; ANC intent in South Africa. One could watch on invitation to conflagration, to reduce the and killing. I’m thinking particularly of those supporters; black Africans; Indians, coloureds television how three taxis containing half ability of law-abiding citizens to defend living in places like the Western Cape who and whites. a dozen men were easily able to interdict a themselves.” This story was first published seem smugly to dismiss the upheavals as a The unrest highlights that South Africa now rampaging mob from attacking a shopping on PoliticsWeb. – Jarryd Neves storm in a tribal calabash — just those pesky meets one of the most important criteria of a mall, while a much larger force of nominally Zulus who every couple of decades need to failed state: an inability or refusal by the state better armed and trained SAPS officers had By William Saunderson-Meyer let off steam in a violent outburst. to carry out its primary function of protecting about much deterrent effect as a row of display The unrest has been like a flash flood scouring It would be foolish to think that the many its citizens. When confronted, the government mannequins in a shop window. a mountain. It has opened deep crevasses in criminals and wannabe revolutionaries spread rolled over and played dead. In several KZN some places and at others uncovered the throughout the country haven’t learnt tactical towns, the SAPS barricaded themselves into Read the full article here Niemöller: Open Letter to Ramaphosa 2.0 he Open Letter to Ramaphosa penned to hear. last week by a BizNews community Start arresting more people for planning member captured the zeitgeist, this insurrection. Sure, we don’t want the Thaving been read by more than a quarter NPA to mess it up, but for goodness’ sake, million people within a few days. The video how much evidence do you need? The Zuma had over 75,000 downloads in the first 24 daughter incited violence. It’s on Twitter. Go hours. On the assumption that you can never get her. Her twin encouraged people to “loot get too much of a great thing, here is the responsibly”. He really did. It’s on YouTube. follow up, the first of what we hope will be It’s inconceivable that nothing has been done many contributions by “Niemöller” the nom about them. And particularly the now-famous de plume our correspondent has selected. It “12”. I’m sure there are others. Many of them. honours the anti-Hitler German theologian Declare a State of Emergency in KZN if you of that name whose famous poem “First they still feel anxious about the temperature on came…” resonates as powerfully today as the ground. It doesn’t have to be a national it did when written exactly three quarters one. It’s not draconian, it’s sensible. They’re of a century ago. In the piece below, our a problem, and we all know it. Niemöller provides a little background to Reshuffle the Cabinet for crying out aloud. the first Open Letter – and follows up with The RET brigade lost. They have very little an equally powerful second one. – Alec Hogg popular support, and almost none from the very large middle ground. Your long game is By Niemöller over now. Surely you can muster up enough I didn’t think my letter would travel quite as professionals with political clout to protect you far and as wide as it did. I didn’t write it for © Zapiro (All Rights Reserved). Originally published in Daily Maverick. as you purge your Cabinet of these loathsome, circulation; it was mostly to let off steam. I’d incompetent, ineffectual people? just had enough. It looked like its many readers more on my mind. And to quote a famous My letter to you last week seemed to reflect Start reading the Riot Act to provincial public had too. South African, I write what I like. what quite a few people were thinking, but no prosecutors. Because while we’re on the subject One should probably quit while one is ahead, I see I made a mistake in saying we didn’t have one had said aloud. At least not to you. Not of arrests, why haven’t obvious crooks been but I really did have a bit more to say. Alas, a white Minister, when there’s Barbara Creecy. that you have nothing else on your plate, but I arrested yet? Like certain politically connected freedom of speech is somewhat of an illusion in But frankly, having one is almost worse than have a bit more to say. Forgive my frankness. thieves involved in the outrageous rip off at South Africa, which is why I’m still anonymous. having none. Zero is at least politically honest. It is – or at least was – the South African way. VBS. You can call me Niemöller. So here we go… On the positive side, you won’t have to read So I thought – for now – that the best thing to between any lines. Read the full open letter here do would be to double down, because there’s Dear Mr President, So here is some more advice you may care 25 | JULY 2021 WWW.BIZNEWS.COM SA RIOTS Security forces betrayed & deserted us: Veness

t was during the height of the chaos When you think about what it means – what in KwaZulu-Natal that BizNews last does it mean for the future of our province? If spoke with Melanie Veness, head of you’re considering putting your money back Ithe Pietermaritzburg Business Chamber. here, you’re asking yourself, “if this happens Frightening for those affected, it now seems again, will the same thing happen? Will as if the worst might be behind for the city nobody step up and defend my business, my and other areas. But what about the cost? property and my employees livelihoods?” If Veness told BizNews founder Alec Hogg that people employed by the state are not prepared so far, the estimated cost to KZN alone is to protect that, then you’re on a hiding to about R20 billion. “Some [business owners] nothing.” have said they will start up again. Others have said, as soon as they get their payout, On what would have happened if civilians they’re taking their money and leaving.” – didn’t defend businesses and property Jarryd Neves “If they hadn’t done it, the damage would be far more extensive. They had the courage On the estimated damage to stand up and protect what they could see “We’re still counting our losses here. I think would be our future food sources and our local they’ve estimated that in the KZN province, businesses – because that’s our livelihood. we’re looking at about R20 billion, which is What do we do if we’ve got no economy and significant. We’re still adding it up. But, if you A burnt-out grocery store following rioting in Soweto. Bloomberg it’s been totally destroyed? there really was no start adding the numbers up it’s millions and police or army presence to speak of. In fact, it millions. A R150 million here, R210 million heart breaks for the employees, because one of politicians. You can’t get away from that now. took so long for the army to get to that even there. The list just goes on and on. There’s the businesses that I’m particularly thinking Everybody is coming up now and saying, right at the end – when we were supposed some still outstanding. Obviously, some of of, (I was there the morning after the looting) you know, what a terrible thing. Where was to have so many forces on the ground – they the buildings still need assessing. The stock and the employees all braved the crowds and everyone when we needed them?” were protecting government infrastructure. itself cost a huge amount, but the building came through to help clean up. It wasn’t as if a massive army group moved damage is significant. It’s still unclear to me My heart absolutely breaks for both sides On the lack of effort to prevent further looting in and took control. If it wasn’t for those why you have to set fire to something you’ve of the equation. It was very hurtful because and rioting communities, we would have been in a much already looted.” we had a lot of businesses. It wasn’t just that “There doesn’t seem to be too many other worse state. I do understand there was some they were looted. They were angrily destroyed. explanations for it other than complicity. We criticism levelled at some of the roadblocks. On whether business owners in PMB are going Attempts were made to set them on fire. There saw people standing, watching it happening. There was an undercurrent on social media to reinvest was horrible spray paint all over the vehicles In fact, there are some that have been caught that, I think, was being driven [with] a racist “Some of them have said they will start up that remained [and] all over the walls. There partaking. There wasn’t any real effort. As I kind of undertone to what was happening. But again. Others have said [that] as soon as they was defecation in building. It was absolutely said previously, the excuses given was that on the ground, that was actually not occurring get their payout, they’re taking their money heartbreaking and horrible. You’ve chosen to there were too many people [and] they were at all. A lot of what was coming out on social and getting out of here – [and] you can hardly take your all and invest it in a place and you overwhelmed – but there was no attempt to media was proven to be untrue. Communities blame them. Some of those businesses have come into that. use any form of tear gas – it just didn’t happen. stood together.” lost absolutely everything, so they will be paid To a large degree, we were betrayed and For me, the only answer is that there was Listen to the full interview off for all their equipment and buildings. My deserted by security forces and some of our complicity and that absolutely destroy’s one. Government’s failure lies in inability to listen

s riots and looting devastated parts By Jonathan Katzenellenbogen alone should have acted as an alarm bell of Gauteng and KZN provinces, The recent mass violence in Gauteng and over a considerable period. They also must government was taken aback, KwaZulu-Natal took government by surprise. be aware of how police dockets go missing Ain shock that something like this could and many crimes go unsolved, not to mention But despite the surprise, the signs are that it happen. Many have been warning that this won’t be a wake up call that will bring about widespread lawlessness. Yet, ANC policy was bound to happen, the poor revolting decisive changes. is unchanging except for plans to expand against a system that fights them. In fact, The government is more likely to double down the role of the state, whether it be through according to Jonathan Katzenellenbogen, on its agenda rather than take a step back and Expropriation without Compensation or a civil unrest has been growing steadily since reconsider. There is nothing in President Cyril National Health Insurance scheme. 2008. Despite this, no substantial work has Ramaphosa’s speeches to the nation since the To kick start the economy and instil confidence been done to improve state education, create explosion to indicate that the ANC will go government will have to signal big changes. employment or even provide decent housing through a period of self-examination. On While the economy has been hit hard by the for the millions of South African’s who go Sunday evening we were told of additional violence and looting, it is probably business without the bare minimum. “ANC policy relief measures, an expansion of the confidence that has suffered the most. Business is unchanging except for plans to expand employment tax incentive, and commitment has seen a government that was unprepared, the role of the state, whether it be through to the Economic Reconstruction and Recovery cannot uphold law and order, and pursues Expropriation without Compensation or a Plan, a heavily state-centric plan focused on policies detrimental to growth. Soon after National Health Insurance scheme,” writes infrastructure and mass job creation. And the explosion, government came up with Katzenellenbogen. Even now, government it is unlikely any major policy changes will Jonathan Katzenellenbogen. Image the idea of sending a delegation to London – who failed to protect thousands of emerge from an inquiry into the unrest. published courtesy of The Daily Friend to re-assure foreign investors. There is little businesses and many more people – is yet There are also great difficulties in changing point in going to London with a weak story to admit they’ve failed the country, harming policy as it would be an admission that If the ANC cannot reform after this crisis, about South African investment and growth. the economy in the process. “The story mistakes were made. It would also bring the its political inability to do so will be entirely That story only changes with the passage of government would have preferred from the party up against those who benefit most from confirmed. The drags on reform are the party’s the big four reforms. agencies is of a dozen instigators plotting its rule – the unions, civil servants, and its need for patronage and jobs to retain and grow the violence. It certainly would not like to cadres who can access contracts. Crisis-driven its support base, and its inability to listen. Read the full article here hear stories that might suggest the people policy reform, rather than a gradual approach, Government has to be aware that with slower are against us and there is a massive problem can pose risks of early derailment, but speed growth and rising unemployment violent “If ANC has any regard for SA and its of lawlessness.” – Jarryd Neves can build its own momentum and success. social unrest has risen fast since 2008. That people, it should withdraw NDR”