eThekwini Municipality's Economic Development Unit is conducting a detailed Economic Activity and Outlook Survey on Durban businesses affected by the April 2022 flood. The results of the information collation will be used to understand the value of damages, type of damages sustained, and conduct an ECONOMIC IMPACT ASSESSMENT which will be used to inform the response strategies of all partners.
The short-term economic impact for this period is currently estimated at a decline of between 1,5% to 1,8% GDP, but these figures are likely to change as more information is submitted. The flood disaster has resulted in risk and supply chain disruptions. There is an urgent need for roads to be repaired as well as labour and equipment for cleaning up. Restoring of water and electricity is also urgent as businesses need to continue with daily operations.
Based on the survey results, all businesses indicated they will reopen, with all indicating that it will take 0-3 months to reopen as they need to fix premises and replace lost equipment and stock. Only 24% (almost one fourth) of businesses indicated they have all-inclusive insurance. A large proportion of respondents (52%) indicated they have no insurance at all. A small percentage (16%) of the respondents indicated they only have building/ structure insured and the remaining 8% indicated they only have business equipment insured. This would suggest that those without insurance will rely on government support measures which will be disbursed through various national and provincial departments. A coordinated plan is required to support the insurance sector in the provision of inclusive and accessible support to businesses in the City, in order to ensure that Durban is more attractive to investors.
This presentation provides an initial overview of the economic impact of the April 2022 KZN flooding on Durban's economy: https://lnkd.in/dPd6q_8m
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