Companies groaning under the weight of crumbling municipalities
Manufacturers and mines are being hard-hit by unstable water and power supplies, social discontent and badly maintained roads
The recent drastic actions taken by Clover and Astral Foods could be followed by more companies as crumbling municipalities fail to provide basic services, making it increasingly difficult for them to run their businesses and raising fears over the government’s stated effort to revive the economy with private sector-led investment spending.
Clover announced this month that it will move its cheese production from Lichtenburg in the North West to eThekwini. In April Astral got a court order compelling the government and the Treasury to intervene and develop a financial recovery plan for the Lekwa Municipality in Mpumalanga, which has been unable to supply the company with reliable water and electricity...