South Africa’s largest food manufacturer Tiger Brands says the loss of stock due to looting is estimated at more than R150 million.
The company says vandalism resulted in damage to their rice and snacks operations in KwaZulu-Natal.
The company put out the JSE Sens announcement, stating that the extent of damage to property and infrastructure is still to be determined.
According to Tiger Brands the loss of profit due to business interruption is still being quantified.
It says security of supply to consumers is subject to the re-opening of key transport routes and access to the operations of their retail and wholesale partners.
Meanwhile, ratings agency Fitch says the current social riots will not have a significant impact on the local economy.
Speaking to SABC News , Fitch’s Senior Director, Jan Frederich, says it’s unlikely that the country’s sovereign rating could falling deeper into junk due to the riots that have been largely characterised by the looting of shopping malls.
But he has acknowledged that violence highlight risks to social and political stability and could affect fiscal policy.
“What we assume for now is these protests will be contained in time and will not last. The overall impact on fiscal revenue will be small, in terms of the immediate impact on public finances that’s likely to be well contained not something that we would think of taking a rating action on.”
Source: SABC News (sabcnews.com)