Durban as a major South African metropolis has witnessed a rise in jobs, this was according to the latest employment data. However, in terms of formal businesses operating in the city there has been a significant decrease. Hundreds of micro and medium-sized businesses, with employees, have either closed down or moved away from the city. This was according to the Durban Chamber of Commerce and Industry (DCCI) during a business breakfast meeting on Wednesday (18 March) to discuss the Country’s and the city’s economic outlook. This data was extracted from the South African Revenue Service (SARS). This was according to DCCI Economic Affairs Chairperson Ajiv Maharaj who also happens to be a senior official at the eThekwini Municipality.
“The city has lost a few hundred firms since 2020, and the area in which we lost the most is in that middle range of firms that employ 5 to 10 employees and slightly bigger ones with 20 to 50 employees,” he said. Maharaj shed light on the reasons for the drop in these businesses with Newzroom Afrika and said small businesses generally have a high failure rate, and it is a common trend in South Africa for enterprises with around five employees to struggle. Additionally, he added that some of the recorded declines could be attributed to fewer businesses submitting their tax returns rather than outright closures or relocations. “While it is possible that many businesses are leaving the city, there could be other contributing factors at play, and further investigation is necessary,” said Maharaj.
“The DCCI is working alongside the Human Sciences Research Council (HSRC) to gain deeper insights into the state of small and medium-sized businesses in Durban.”
Maharaj is right to point out that further investigation is needed. This will help to establish a holistic picture of the situation. None the less there is a need to extend some form of relief to small business with in major South African cities such as Durban/eThekwini region. Businesses across South Africa’s urban centres need to operate in freer range no more red tape and less bureaucratic regulations. The government in Pretoria needs to consult with metros across the country on how to abolish outdated restrictions while keeping tabs on businesses concerning their level of taxation. Improvements in regional bilateral trade could go a long way in improving the attainment of produce. This will require investment in the necessary infrastructure and construction. Cooperation from all three government levels national, provincial and municipal. Even traditional leadership should be given a platform.
The investigation is now underway and the truth will reveal itself. The current well-being and state of local small and medium businesses will reveal itself. Meanwhile Durban as a Southern African regional port remains a centre of attraction for commerce.
The City of Durban has been given a thumbs-up as the premier destination for investment in Africa. During the Resurgence Conference focused on investment, key speakers highlighted Durban’s stability and resilience as major factors that make it an attractive option for both domestic and international investors. The conference was held at Durban’s International Convention Centre. “When it comes to investment, we must be pragmatic,” said Russell Curtis, chief executive of Durban’s investment promotion authority, who emphasised that every investment carried a inherent risk. “You have to just grab hold of that risk. “If you’re looking for returns on your investment, we believe Durban is a very stable city in terms of administration.” Curtis noted that over the past 30 years, since the dawn of democracy in South Africa, Durban has received numerous awards for its administrative stability.
This reliability effectively reduces investment risk, and successfully attracts a broad spectrum of investors.
eThekwini region must not only keep up the good work but also accelerate it. The municipality and Mayor Cyril Xaba alongside local civil society non-Governmental Organizations (NGOs) need to pull together to improve the city for investment. Stability and resilience are major cornerstones for the city to build on. Pragmatism is the key to enhancing eThekwini’s position as a hub for commerce. As a Port on the Indian Ocean Durban can play central role in trade and investment for South Africa. eThekwini Municipality must clean up its act and promote investment in the city as a major tourism and commercial centre. The municipality must do this to create jobs as well as end the city’s cycle of poverty. No stone must be left unturned. eThekwini Municipal council must provide efficiency leading the city to improve its standing.
Investors do not like making investments where there is risk. Investors prefer places that are secure and stable. eThekwini for its part needs to enhance and improve its desirability for investment and job creation.
Article written by:
Yacoob Cassim
Journalist at Radio Al Ansaar
