Berliner Boersenzeitung - Floods heap woes on South Africa trading hub

EUR -
AED 4.104397
AFN 76.945413
ALL 99.231189
AMD 432.617988
ANG 2.010719
AOA 1036.724537
ARS 1074.129077
AUD 1.641361
AWG 2.011389
AZN 1.904081
BAM 1.955429
BBD 2.252673
BDT 133.324726
BGN 1.955529
BHD 0.42062
BIF 3234.286875
BMD 1.117438
BND 1.441627
BOB 7.709539
BRL 6.055052
BSD 1.115688
BTN 93.249023
BWP 14.748204
BYN 3.651208
BYR 21901.788071
BZD 2.248874
CAD 1.517202
CDF 3208.165381
CHF 0.949812
CLF 0.037598
CLP 1037.433333
CNY 7.880067
CNH 7.870123
COP 4641.820049
CRC 578.89026
CUC 1.117438
CUP 29.612111
CVE 110.244101
CZK 25.088056
DJF 198.672338
DKK 7.466767
DOP 66.967305
DZD 147.657009
EGP 54.142736
ERN 16.761573
ETB 129.466357
FJD 2.459262
FKP 0.850995
GBP 0.83876
GEL 3.051043
GGP 0.850995
GHS 17.539675
GIP 0.850995
GMD 76.548818
GNF 9639.172699
GTQ 8.624365
GYD 233.395755
HKD 8.706352
HNL 27.675753
HRK 7.597474
HTG 147.212093
HUF 393.517458
IDR 16941.25656
ILS 4.226056
IMP 0.850995
INR 93.284241
IQD 1461.522939
IRR 47035.770303
ISK 152.262556
JEP 0.850995
JMD 175.286771
JOD 0.791709
JPY 160.715589
KES 143.922717
KGS 94.13132
KHR 4531.14103
KMF 493.181764
KPW 1005.693717
KRW 1488.975611
KWD 0.340897
KYD 0.929724
KZT 534.908597
LAK 24636.329683
LBP 99909.860054
LKR 340.395471
LRD 223.1377
LSL 19.586187
LTL 3.299505
LVL 0.675928
LYD 5.297996
MAD 10.818149
MDL 19.468309
MGA 5046.04342
MKD 61.598323
MMK 3629.395577
MNT 3797.054841
MOP 8.955702
MRU 44.337595
MUR 51.268486
MVR 17.164273
MWK 1934.433289
MXN 21.694843
MYR 4.698871
MZN 71.348848
NAD 19.586187
NGN 1831.984424
NIO 41.062216
NOK 11.714943
NPR 149.198716
NZD 1.791197
OMR 0.429669
PAB 1.115688
PEN 4.181807
PGK 4.367172
PHP 62.188829
PKR 309.994034
PLN 4.274593
PYG 8704.349913
QAR 4.067529
RON 4.972492
RSD 117.064808
RUB 103.380402
RWF 1504.014883
SAR 4.193134
SBD 9.282489
SCR 14.59602
SDG 672.143165
SEK 11.365691
SGD 1.442952
SHP 0.850995
SLE 25.530448
SLL 23432.113894
SOS 637.579134
SRD 33.752262
STD 23128.713955
SVC 9.762149
SYP 2807.596846
SZL 19.593286
THB 36.793929
TJS 11.859752
TMT 3.911034
TND 3.380559
TOP 2.617156
TRY 38.124201
TTD 7.588561
TWD 35.736832
TZS 3045.822602
UAH 46.114158
UGX 4133.216465
USD 1.117438
UYU 46.101261
UZS 14197.308611
VEF 4047978.463464
VES 41.096875
VND 27494.566096
VUV 132.664504
WST 3.125992
XAF 655.832674
XAG 0.035881
XAU 0.000426
XCD 3.019933
XDR 0.826843
XOF 655.832674
XPF 119.331742
YER 279.722751
ZAR 19.477909
ZMK 10058.288435
ZMW 29.537401
ZWL 359.814634
  • CMSD

    0.0100

    25.02

    +0.04%

  • BCC

    -7.1900

    137.5

    -5.23%

  • JRI

    -0.0800

    13.32

    -0.6%

  • NGG

    0.7200

    69.55

    +1.04%

  • RELX

    -0.1400

    47.99

    -0.29%

  • SCS

    -0.3900

    12.92

    -3.02%

  • RBGPF

    58.8300

    58.83

    +100%

  • CMSC

    0.0300

    25.15

    +0.12%

  • BCE

    -0.1500

    35.04

    -0.43%

  • RIO

    -1.6100

    63.57

    -2.53%

  • GSK

    -0.8200

    40.8

    -2.01%

  • VOD

    -0.0500

    10.01

    -0.5%

  • RYCEF

    0.0200

    6.97

    +0.29%

  • AZN

    -0.5200

    78.38

    -0.66%

  • BTI

    -0.1300

    37.44

    -0.35%

  • BP

    -0.1200

    32.64

    -0.37%

Floods heap woes on South Africa trading hub
Floods heap woes on South Africa trading hub / Photo: MARCO LONGARI - AFP

Floods heap woes on South Africa trading hub

First it was Covid, then riots and now floods: KwaZulu-Natal (NZN) province, South Africa's gateway to the Indian Ocean, is reeling from a unpredented string of disasters.

Text size:

Here is factfile on the region:

- Economic giant -

KZN employs 2.4 million out of 14.5 million workers in South Africa's formal economy and accounts for more than a sixth of national GDP.

It is the second-largest GDP contributor after the economic hub of Gauteng which houses Johannesburg, according to global auditors PwC.

The port of Durban is the country's biggest trade platform for the agricultural, automotive and mining sectors.

Durban is the largest and busiest harbour in South Africa, handling over 60 percent of its container traffic, says PwC senior economist Christie Viljoen.

- Flood bill -

Estimates of the cost of the floods that struck KZN this month, fuelled by record-breaking rains, are sketchy.

Many flooded areas remain inaccessible due to road damage.

The mayor of greater Durban, Mxolisi Kaunda says lost production alone will cost 740 million rand ($47.3 million / 44 million euros), according to preliminary estimates.

Most of the region's 1,150 businesses are located on a flood plain and were badly battered.

But these "operational losses" do not include the cost of fixing roads, railway lines, bridges, power line, water pipes and sewerage, or damage to homes -- a bill that will be many billions of rand.

Economists and business leaders say the floods could have a potentially crippling impact on growth in 2022.

"The city will take about three months to get back to where it was to pre-flood levels and it should reduce the city's annual GDP by about 1.8 percent," said Ajiv Maharaj, a senior official in charge of local economic development.

- Pressure on exports -

Experts say damage to businesses and the port of Durban, adding to the impact on the supply chain from the Ukraine war, will dampen exports.

Durban Chamber of Commerce and Industry CEO Palesa Phili said road freight between Durban and Gauteng was currently at half of normal levels.

"Export shipments and revenues will be under pressure in the short term," said Viljoen.

"Damaged goods in warehouses and at ports cannot necessarily be replaced and will result in weaker export revenues."

The Durban region makes food, beverage and tobacco products, textiles and leather goods and petroleum and chemical products.

Its automotive industry is also a big employer.

Toyota has temporarily suspended operations at its Durban plant, warning of delays in delivering popular models such as the Hilux pickup -- or "bakkie," as these trucks are dubbed here.

- Agriculture hit -

The province is a key farming region, known chiefly for its sugarcane fields in the Tongaat region.

Agriculture Minister Thoko Didiza has estimated losses in the agriculture sector to be more than 500 million rand ($32 million).

Around half of those losses will be incurred by cane farmers, although no shortages of sugar are expected.

- Tourism worried -

Durban is a leading tourism destination, favoured for its warm subtropical climate, idyllic beaches and nearby wildlife sanctuaries.

The region had been hoping for a rebound from the Covid-19 pandemic for the upcoming northern hemisphere summer, but is now bracing for cancellations from both local and international travellers.

A crucial test will come next month when Durban stages an annual trade conference -- the Africa Travel Indaba, for which 6,000 people had been expected.

"The show is going ahead as we had planned," said Themba Khumalo, head of SA Tourism.

"In times of crisis such as this, it is not time to lean back... it's time for us to show our economic support for Durban," he said.

(Y.Yildiz--BBZ)