Eastern Cape businesses gear up for level 4 activity

Today will not be business as usual, even for those firms allowed to start operating again following the enforced Covid-19 national lockdown, Eastern Cape business leaders said at the weekend.

The easing of the lockdown from level 5 to 4 may mean that businesses in some sectors of the economy can operate from today, with at least 1.5 million workers nationally expected to return to work — but for large parts of the Eastern Cape it will not be business as usual, and the disaster will constrain activity for some time to come.

According to Eastern Cape Chamber of Business president Vuyisile Ntlabati, even businesses allowed to operate during level 4 may not open up because of the financial impact of the total shutdown since March 26 to the end of April.

“They struggle financially as a result of their businesses having been closed since the end of March," Ntlabati said ahead of the first day of work for many business owners and employees.

He noted that the limitations on the number of workers for each business who might be allowed to return to work “could be problematic and have long-term financial effects”.

Businesses had already suffered financially and the additional cost burden of screening employees to curb the spread of the virus will make it harder for some businesses to restart even if they are allowed to open during level 4.

“It won’t be business as usual. Some business won’t even be able to operate any more. It’s a scary situation,” said Ntlabathi.

He said the month-long lockdown had had a dire impact on businesses, especially small businesses.

Minister of labour Tulas Nxesi, in a media briefing on Sunday, said the risk of continued transmission of the coronavirus disease was among key factors taken into account to determine if some businesses could be allowed to reopen.

Government had also considered the expected impact on the sector of a continued full lockdown, the contribution of the sector to the broader economy and the promotion of community wellbeing.

Border-Kei Chamber of Business CEO Les Holbrook said level 4 was still very restrictive. It was focused on getting industry going but there were still challenges.

He agreed with Ntlabathi that up to 50% of businesses would find operating under level 4 very difficult because they had been out of operation for over a month.

“The service side is also restricted, but it is a good start for business. However, it will not be business as usual, for a long, long time.

“Some employees might not be keen, or will resist going back to work partly due to concerns of vulnerability, but also, after five weeks of shutdown, some may be a bit too comfortable,” said Holbrook.

He said the reopening of some businesses would put about 35% of gainful jobs back into the economy but what was important was that “business must not misinterpret the regulations for level 4 because there  are serious fines attached to operating outside the regulations”.

Nxesi said employers must put safety measures in place to protect workers and must screen them for any Covid-19 symptoms when they report for work.

Nxesi emphasised that employers who did not comply with the directives would be closed, fined and face criminal prosecution.

He said workers needed to take responsibility by wearing PPEs provided, wash their hands regularly and sanitise often.