Vaccines will boost jobs, says Pepkor CEO

550 of Pepkor’s shops were damaged in the violent unrest that rocked SA in July

SA’s largest clothing retailer sees a successful vaccination rollout as key to reopening the economy and adding new stores, helping to mitigate the world’s highest unemployment rate.

“If we get people vaccinated, the economy can normalise quickly,” Pepkor CEO Leon Lourens said. “If the economy normalises, we can create jobs.”

The government imposed strict restrictions to curb the spread of the coronavirus from March 2020, but subsequent waves of infections have forced some measures to be reinstated.

The economy went on to contract the most in 27 years in 2020, extending its longest downward cycle since World War 2.

“That’s not good enough for an emerging economy,” Lourens said. “The unemployment levels are just not sustainable. We cannot continue like this.”

SA has still only fully inoculated about 19% of the adult population. The challenge has since shifted from a shortage of supply to weak demand, health officials have warned, with hesitancy and scepticism widespread.

Large mining companies are trying to combat hesitancy and many are offering onsite vaccinations. Still, SA’s failure to grow the economy is likely to exacerbate its jobs crisis, said Neal Froneman, the CEO of Sibanye Stillwater, SA’s largest miningindustry employer.

Pepkor, along with other SA companies, is battling to recover from violent unrest that rocked parts of the country in July. With about 550 of its shops damaged, the retailer still hopes to stick to its annual store opening programme of about 300 outlets a year alongside an ambitious refurbishment plan.

“If we can open 300 stores a year, we’re talking about 3,000 jobs a year that we create,” Lourens said. “But that we can only do in a growing economy.”

If the economy continues to suffer, the risk of further social unrest remains, he said.

“It’s just not possible for our economy to be in a good condition while our whole tourism sector is gone, while all big events are gone. People often forget, but for every theatre production, wedding, sports game, the informal sector works at those events.”