Skynamo Data Shows July Unrest Continues to Affect South African Business Recovery
Recent data from Skynamo’s Industry Thermometer reveals that the civil unrest in July is having a longer-term impact on South African businesses—interrupting the strong sales momentum that had been building toward pre-pandemic levels.
Tracking Industry Performance Across 26 Sectors
The Skynamo Industry Thermometer is a free monthly resource used to benchmark sector health and industry sales activity. It tracks average order values and volumes from more than 500 South African manufacturers, wholesalers, and distributors across 26 industries, all using the Skynamo field sales app to capture and process orders.
Growth Slows for the First Time in 2021
According to Zane van Rooyen, Product Marketing Manager at Skynamo, August’s Industry Thermometer data reflects the first slowdown in sales growth this year.
“Optimistically, only 8 of the 26 industry groups monitored showed negative growth compared with the previous month,” says van Rooyen. “While this stalling is noticeable, it’s relatively small compared to the significant drop we saw in 2020 due to the pandemic.”
Apparel (clothing and shoes) and packaging industries took some of the hardest hits in August. “Order volumes dipped compared to earlier months,” he notes. “However, when looking at the combined performance across all industries, the trend line still tilts slightly upward. August managed to hold its own—just barely.”
Economic Challenges Expected to Persist
These findings align with comments from Finance Minister Enoch Godongwana, who recently stated that the unrest will not quickly resolve its economic impact and will likely stretch beyond 2021. Early estimates placed the cost to the economy at around R50 billion, with long-term effects still unfolding.
“Despite this, the 1.2% economic growth recorded in Q2, as highlighted by the National Treasury, has been encouraging—and we’re seeing similar positive signals reflected in our data,” van Rooyen adds.
A Cautious but Hopeful Outlook
Van Rooyen notes that the upcoming months remain uncertain:
“Only time will tell what the next stretch of the tightrope will look like. I am cautiously optimistic that South Africa’s resilience will carry us through this wave and that local businesses will emerge stronger and more informed on the other side.”
