The destruction of bank branches and ATMs in the violence and looting will affect South Africa’s poorest the most.
This is according to the Banking Association of South Africa (BASA), which issued a statement on Tuesday on the unrest that has gripped Gauteng and KwaZulu-Natal over the past several days.
Safety and jobs at risk
“The destruction of bank branches and automatic teller machines (ATMs) in KZN and Gauteng, and threats to the safety of bank employees, directly imperils the safety, social security, economic activity and jobs of many thousands of South Africans,” BASA said.
[It] hampers the ability of South Africans to draw their salaries and make payments for their daily needs, and of businesses to operate and pay their staff and suppliers.”
The unrest began last week with the jailing of former President Jacob Zuma, who was found earlier guilty of contempt of court by the Constitutional Court.
As of Tuesday evening, police had arrested 1,234 people involved in the unrest and looting – 549 in KwaZulu-Natal and 683 in Gauteng. 72 people had lost their lives, according to an update by the National Joint Operational and Intelligence Structure (NatJOINTs).
‘Many weeks’ for ATMs to return to service
BASA said it will take “many weeks” for the “hundreds” of destroyed ATMs to be returned to service. Cash points at many retail outlets have also been affected.
“When bank operations are forced to close and services are suspended to protect employees from violence, it is the most vulnerable in our communities who suffer most,” the Association explained.
“Many child support grants, pensions and other social security grants are accessed through the banking system. In the meantime, banks will do what they can to continue providing financial services and assist with the payment of social security grants.
“It will cause near immediate suffering and distress if many of the 11.5 million South African Social Security Agency (SASSA) beneficiaries, who use ATMs and other point of sales devices, are not able to collect their grants.”
On Monday, SASSA announced that it was suspending grant payments at cash pay points, until further notice, to ensure the safety of beneficiaries and cash-in-transit industry.
The industry had informed SASSA that it was unable to provide cash devilery services because of the unrest.