Roets referred to the impact of the ongoing strike on platinum mines as an example. The impact of the strike is increasing among small businesses and spreading to the Eastern Cape, where many of the miners used to send money to their families.
“In many cases small businesses have had to close their doors and are facing a bleak future with creditors hounding them for payment full well knowing that they are as much victims of the strike as the miners themselves,” said Roets.
“Most of the people approaching us for help are now more than three months behind in their payments and their creditors are demanding payment."
He said many have been threatened with immediate legal action and going under debt review is the only way to secure their property and prevent further legal action to be taken against them.
Rustenburg is at the heart of the platinum strike.
A spokesperson for the Spar group confirmed the ripple effect of the platinum strike on its businesses in other parts of the country. There has been a sharp downturn in in rural areas of the Eastern Cape, KwaZulu-Natal and even as far as Limpopo, where many of the miners come from, he said.
Chris Schutte, who heads up Astral Foods, one of the largest distributors of chicken in the country, was quoted as saying that sales in the Rustenburg area had dropped between 30% and 40%.
- Fin24
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