Stock exchange feels pinch of KZN cyclone


Johannesburg Stock Exchange

JOHANNESBURG, (CAJ News) – THE deadliest floods in South Africa’s history are a threat to an economy that is already in a precarious position.

This in a country whose economy is under siege from the outbreak of the coronavirus, in 2020 locally.

The impact of the flood is being felt at the Johannesburg Stock Exchange (JSE), the largest bourse in Africa.

Some companies listed in there have been impacted.

Sappi, the pulp and paper company, said some staff were unable to travel to and/or from work and the transport of goods and services had been severely disrupted.

This after widespread flooding made many areas inaccessible and damaged roads, railway lines, infrastructure, warehousing and private residences.

Sappi’s Saiccor, Stanger and Tugela Mills, along with its export facilities at the Durban Port, have been impacted.

Production has been stopped, some inventory damaged, and deliveries to domestic customers affected.

In addition, shipping lines have confirmed that export shipments will also be negatively impacted.

“Although the disruption to production and customer deliveries were outside our control, we will make every effort to minimise the negative impact on our customers,” Steve Binnie, Sappi Chief Executive Officer, said.

Pepkor, the investment and holding company, disclosed PEP’s Isipingo distribution centre in Durban sustained significant damage due to the floods.

Supply chain operations have been adversely affected.

The distribution centre has been temporarily closed.

This according to the company is to ensure the safety and well-being of employees and to commence recovery operations.

PEP, a Pepkor entity, operates three distribution centres across South Africa, situated in Durban, Cape Town and Johannesburg.

Leon Lourens, Pepkor Chief Executive Officer stated: “We are deeply saddened by the impact these floods are having on the KwaZulu-Natal community, including our employees, customers and their families.”

MTN, the mobile network operator, disclosed over 500 sites were down in the region.

Some 278 sites recovered on Wednesday.

MTN has over 7 million customers in KZN, where more than 300 people have been confirmed dead during the floods.

The mobile operator has donated R500 000 towards relief efforts.

– CAJ News











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