The Industrial Development Corporation (IDC) says approvals for post-unrest business recovery funding have surpassed R1-billion and will sustain 22 493 jobs.

The agency said the fund was established to help affected businesses in a variety of sectors, including retail, manufacturing and agricultural, recover and rebuild.

The unrest impacted growth, affected job creation opportunities, economic transformation and investor confidence in the domestic economy, IDC CEO TP Nchocho says.

There is still work to be done to bring many businesses to full operations. The IDC is encouraged by the collective effort led by the Department of Trade, Industry and Competition, the National Empowerment Fund and the business community at large, he says.

The IDC cites three examples of businesses approved for funding. KwaZulu-Natal food manufacturer Heartlands Foods, which employs 336 staff, benefited from the IDC’s Post Unrest Business Recovery Fund. Its factory was torched during the unrest, resulting in extensive damage to the building, plant machinery and stock.

Further, clothing manufacturer Kingsgate had four business sites that were severely affected by the unrest. The IDC has provided funding to restore Kingsgate operations at all four sites.

“This business has more than 770 employees, the majority of whom are bread winners. The loss of jobs would have not only impacted on employees, but their dependants as well,” says Nchocho.

Additionally, apparel manufacturer and supplier Trade Call Investments was impacted by the looting. Following the unrest, its factory in Mobeni, north of Durban, went out of operation, affecting close to 120 employees.

The company’s other factory in Ladysmith, employing close to 1 100 employees, also faced disruption in the supply of raw materials. Trade Call’s stock, comprising electronics valued at close to R120-million, was damaged during the looting.

“The challenges faced by Trade Call before receiving IDC funding reflect the disruption in the supply chain, which has impacted several businesses that were looted in Gauteng and KwaZulu-Natal.

“The objective is not only to bring these businesses to full operation, but ensure that jobs that could be lost because of the unrest are retained. This led to the funding interventions and funding packages,” says Nchocho.

These approvals will go a long way to refurbishing and restoring infrastructure, such as factories and warehouses, including plant equipment and machinery, that were set alight or looted, he adds.