Unrest in South Africa damaged hundreds of businesses but property developers and retailers say they remain committed to the fast-growing consumer markets of its predominantly Black townships. At least 161 shopping malls, 11 warehouses and eight factories suffered heavy damage, sites that include tenants such as grocery chain Shoprite (SHPJ.J) and Walmart (WMT.N) majority-owned Massmart (MSMJ.J). Yes property developers remained committed to not only repairs, but the development of another 30 malls in the pipeline. Vukile Property Fund (VKEJ.J), for example, will repair its damaged Daveyton Mall in Johannesburg, one of the first township malls, and will forge ahead with a 90-million-rand ($6.1 million) upgrade of the site.
Real estate developers and retailers have spent the last two decades targeting rising consumer spending by the Black middle class in areas that were disadvantaged for decades under white minority rule. For such communities, the benefits include jobs and the convenience of having shops nearby, eliminating the cost of travelling to other towns, and these developments in turn attract other retailers and services such as banks. Still, some players may delay further investment beyond repairing damage pending economic growth. Many are still assessing the extent of the damage from the violence which began on July 9 and lasted until July 15.