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Small Businesses Worried About Bailout

Despite the promise of R2.3-billion in government help to small businesses, those affected by recent looting are worried about red tape.

Treasury has announced close to R40-billion in relief to those who were affected by the unrest, as well as by COVID-19 lockdown measures.

Finance Minister Tito Mboweni said the chaos in parts of KwaZulu-Natal and Gauteng had a major impact on the country’s economic recovery trajectory.

Some are wondering whether the businesses that need it the most, will receive the money.

“A lot of these micro-businesses have been affected by the lockdown measures. It’s affected their livelihoods, their income, their profitability etc, and a number of them won’t be compliant,” said Vusi Thembekwayo, MyGrowthFund founder and CEO.

“I think the plea to government would be [to] help the businesses that were affected, not the businesses that are compliant. Because if they do that, I would guarantee you that would almost certainly destroy 50 percent of the businesses that were affected by these lootings.”