<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106911311-16263497152021-07-14t174537z_2065885000_rc2eko9pqtq8_rtrmadp_0_safrica-zuma.jpeg" alt="" class="wp-image-410953" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106911311-16263497152021-07-14t174537z_2065885000_rc2eko9pqtq8_rtrmadp_0_safrica-zuma.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106911311-16263497152021-07-14t174537z_2065885000_rc2eko9pqtq8_rtrmadp_0_safrica-zuma-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106911311-16263497152021-07-14t174537z_2065885000_rc2eko9pqtq8_rtrmadp_0_safrica-zuma-140x80.jpeg 140w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>Religious leaders carrying South African flags walk near a looted shopping mall as the country deploys army to quell unrest linked to the jailing of former South African President Jacob Zuma, in Vosloorus, South Africa, July 14, 2021. Siphiwe Sibeko | Reuters</figcaption></figure>



The South African economy’s buoyant start to the year is likely to be ruined by a combination of renewed COVID-19 containment measures and <a href="https://www.cnbcafrica.com/2021/photos-show-south-africa-riots-in-the-wake-jacob-zuma-arrest/">recent civil unrest</a>, experts have warned.



A third wave of infections led the government to enforce strict lockdowns toward the end of June. President Cyril Ramaphosa announced last week that the alert level would be downgraded to level three from level four, with daily new cases now falling consistently from their July 8 peak and vaccinations gathering pace.



However, some measures limiting economic activity remain in place, and the hit from a roughly month-long lockdown was compounded recently by a <a href="https://www.cnbcafrica.com/2021/south-african-crowds-rampage-overnight-defying-calls-for-end-to-violence-looting-2/">week of riots and looting</a> across the economic hubs of Gauteng and KwaZulu-Natal, ostensibly in protest at the arrest of former President Jacob Zuma.



<a href="https://www.cnbcafrica.com/2021/south-africas-zuma-hands-himself-over-to-police-to-begin-sentence/">Zuma handed himself in to the South African Police Service on July 7</a> after being sentenced to 15 months in jail for failing to appear before an inquiry into corruption during his time in office, between 2009 and 2018.



Following the deployment of the military, much of the unrest has calmed in recent weeks, but although at first glance the short-term economic damage seems less concerning than initially feared, analysts are worried about underlying longer-term effects on the broader economy.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106911301-16263491062021-07-13t201019z_915695255_rc2wjo9ioubl_rtrmadp_0_safrica-zuma-fire.jpeg" alt="" class="wp-image-410954" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106911301-16263491062021-07-13t201019z_915695255_rc2wjo9ioubl_rtrmadp_0_safrica-zuma-fire.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106911301-16263491062021-07-13t201019z_915695255_rc2wjo9ioubl_rtrmadp_0_safrica-zuma-fire-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106911301-16263491062021-07-13t201019z_915695255_rc2wjo9ioubl_rtrmadp_0_safrica-zuma-fire-140x80.jpeg 140w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>A fire engulfs Campsdrift Park, which houses Makro and China Mall, following protests that have widened into looting in Pietermaritzburg, South Africa July 13, 2021, in this screen grab taken from a video obtained from social media. Sibonelo Zungu | Reuters</figcaption></figure>



“To put this into perspective, retail trade and production accounts for about 20 percent of gross domestic product, or almost $70 billion, of which $14 billion may have been lost, according to estimates by local banks,” Robert Besseling, CEO of political risk consultancy Pangea-Risk, told CNBC on Friday.



“Moreover, the impact on poor communities will be disproportionate, since most looted stores and malls are close to townships. These communities will now struggle to find nearby groceries and supplies, even while COVID-19 lockdowns remain in place.”



Besseling said the prospect of future fuel shortages cannot be ruled out, since three of the country’s refineries are now shut, two of which due to maintenance reasons. Only one refinery in the Free State province remains operational, while panic buying has placed extreme pressure on supply chains, he added.



“Therefore the medium to longer term impact of the unrest on the economy is expected to be more substantial than the immediate repercussions of the violence, which will drag down economic recovery prospects and potentially motivate higher rates of criminality and unrest, including copycat instances of looting,” Besseling said.



Zuma’s arrest deepened divisions within the ruling ANC party between the former president’s loyalists and those on board with the agenda of his successor, President Ramaphosa. Besseling suggested that in order to deliver on his promised economic reform agenda, Ramaphosa will have to seize this opportunity to purge Zuma loyalists from his party and governance structures.



<h3 class="wp-block-heading" id="h-riots-could-not-have-come-at-a-worse-time">Riots ‘could not have come at a worse time’</h3>



The International Monetary Fund expects South Africa’s economy to grow 4% in 2021 and all indicators up to now have pointed to a sharper-than-expected rebound from the COVID-induced recession.



First-quarter GDP grew 1.1% for an annual rise of 4.6%, while increased mobility and business confidence data in the second quarter have also offered cause for optimism.



However, KwaZulu-Natal and Gauteng, where many ruined businesses are expected to take years to rebuild, contribute half of the country’s GDP and almost half of its entire population. The port of Durban in KwaZulu-Natal acts as a trade gateway to the southern subcontinent and accounts for around 70% of South Africa’s imports.



Economists are estimating that the cost to the national economy from the destruction caused by pro-Zuma protests is estimated at 50 billion rand ($3.43 billion).



In a research note last week, NKC African Economics noted that other major concerns include the further disruption of supply chains on top of that caused by the pandemic, along with threats to food security.



“The events that occurred in KwaZulu-Natal and Gauteng could not have come at a worst time” said NKC senior economist Pieter du Preez.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106911306-1626349393947-gettyimages-1233944021-AFP_9EU6LA.jpeg" alt="" class="wp-image-410955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106911306-1626349393947-gettyimages-1233944021-AFP_9EU6LA.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106911306-1626349393947-gettyimages-1233944021-AFP_9EU6LA-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106911306-1626349393947-gettyimages-1233944021-AFP_9EU6LA-140x80.jpeg 140w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>South African Police Services (SAPS) members arrest a looter at the Gold Spot Shopping Centre in Vosloorus, southeast of Johannesburg, on July 12, 2021. Guillem Sartorio | AFP | Getty Images</figcaption></figure>



NKC revised down its economic growth forecast for South Africa in 2021 to 3.8% from 4.3%, and said the medium-term outlook is also hindered by falling investor confidence and a lack of fiscal space, which is expected to crowd out fixed investment expenditure.



“Early estimates of the damage are alarming, with 50,000 informal traders and 40,000 businesses affected, putting 150,000 jobs at risk,” du Preez said.



“Approximately 3,000 stores were looted, 100 shopping malls suffered significant fire damage, and almost 1,200 retailer outlets were impacted and damaged.”



All this came in addition to the third wave of COVID-19 hitting harder than expected due to the transmissibility of the delta variant, he added.



“The resultant four weeks of adjusted level 4 lockdown measures will have an impact in Q3, while the current adjusted level 3 measures will continue to hamper activity somewhat,” du Preez said. “In general, we expect an economic contraction in Q3, before the rebuilding commences, yet again, in Q4.”

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South Africa unrest and COVID measures are starting to derail its economic recovery

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106913464-1626783928878-gettyimages-1233680604-AVDjune7.jpeg" alt="" class="wp-image-410942" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106913464-1626783928878-gettyimages-1233680604-AVDjune7.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106913464-1626783928878-gettyimages-1233680604-AVDjune7-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/106913464-1626783928878-gettyimages-1233680604-AVDjune7-140x80.jpeg 140w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>In this Photo illustration a World Health Organization(WHO) logo seen displayed on an Android phone. Avishek Das | Getty Images</figcaption></figure>



World Health Organization officials said they are still trying to understand why the delta variant is more transmissible and potentially makes people sicker than the original coronavirus strain.



“We’re really trying to get a better handle on why the delta variant is more transmissible,” said Dr. Maria Van Kerkhove, WHO’S technical lead on Covid-19, said at a press briefing Friday. “There are certain mutations in the delta variant that, for example, allow the virus to adhere to a cell more easily. There is some laboratory studies that suggest that there’s increased replication in some of the modeled human airway systems.”



New data is emerging around the world on the highly transmissible strain in recent weeks as scientists try to better understand the new threat. The Centers for Disease Control and Prevention warned lawmakers Thursday that new research indicates the delta strain is more contagious than swine flu, the common cold and polio. It is as contagious as chickenpox. It also appears to have a longer transmission window than the original Covid-19 strain and may make older people sicker, even if they’ve been fully vaccinated.



<h3 class="wp-block-heading" id="h-read-more-governments-urged-to-boost-cash-grants-to-end-pandemic-fuelled-child-labour">Read more: <a href="https://www.cnbcafrica.com/2021/governments-urged-to-boost-cash-grants-to-end-pandemic-fuelled-child-labour/">Governments urged to boost cash grants to end pandemic-fuelled child labour</a></h3>



The warning on Thursday was made in a confidential document that was reviewed by CNBC and authenticated by the federal health agency.



“The virus itself, as it starts, is a dangerous virus. It’s a highly transmissible virus. The Delta variant is even more so,” Van Kerkhove said. “It’s doubly more transmissible than the ancestral strains.”



WHO officials expect other dangerous variants to also emerge as countries struggle to distribute the life-saving vaccines to their populations.



<h3 class="wp-block-heading">Read more: <a href="http://Delta variant is one of the most infectious respiratory diseases known, CDC director says">Delta variant is one of the most infectious respiratory diseases known, CDC director says</a></h3>



“They become more fit the more that they circulate and so the virus will likely become more transmissible because this is what viruses do they evolve, they change over time,” Van Kerkhove said.



She said it’s imperative that nations follow public health measures, like practicing social distancing and wearing masks, while nations distribute more vaccines around the world, especially in those with the lowest rates of immunization.



We need “about 70% coverage globally, to really slow down the transmission and reduce the risk of emergence of new variants,” according to Dr. Bruce Aylward, senior advisor to the director-general at WHO.



Still, with current trends, health experts are not optimistic. “This will not be the last virus variant that you hear us talking about,” Van Kerkhove said.

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1127605847-820x547.jpg" alt="" class="wp-image-410750" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1127605847-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1127605847-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1127605847-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1127605847-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1127605847-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1127605847-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Albert Bourla, chief operating officer and chief executive officer of Pfizer Inc., listens during a Senate Finance Committee hearing on drug pricing on Capitol Hill in Washington, D.C., U.S., on Tuesday, Feb. 26, 2019. Top executives from seven of the world&#8217;s biggest drug companies are testifying before Congress to talk about drug costs, a long-awaited session that could kickstart legislation to rein in prices.&nbsp;Photographer: Zach Gibson/Bloomberg via Getty Images</figcaption></figure>



The effectiveness of Pfizer’s COVID-19 vaccine steadily declines over time, dropping to about 84% for vaccinated people about four to six months after getting their second dose, according to CEO Albert Bourla.



The comments, made on Wednesday on CNBC’s “The Exchange,” are based on the findings of a&nbsp;new company-funded study&nbsp;that has yet to be peer reviewed. It comes as the drugmaker clashes with U.S. health officials over the need for a third COVID vaccine dose to boost immunity protection.



The study found the vaccine’s effectiveness was strongest, at 96.2%, between one week and two months after receiving the second dose. It declined an average of 6% every two months, according to the study, which signed up more than 44,000 people across the U.S. and other countries. The efficacy after “four to six months was approximately 84%,” Bourla said.



“We have seen also data from Israel that there is a waning of immunity and that starts impacting what used to be what was 100% against hospitalization. Now, after the six month period, is becoming low 90s and mid-to-high 80s,” Bourla said.



<h3 class="wp-block-heading" id="h-read-more-pfizer-biontech-strike-south-africa-covid-19-manufacturing-deal-with-biovac">Read more: <a href="https://www.cnbcafrica.com/2021/pfizer-biontech-strike-south-africa-covid-19-manufacturing-deal-with-biovac/">Pfizer/BioNTech strike South Africa COVID-19 manufacturing deal with Biovac</a></h3>



“The good news is that we are very, very confident that a third dose, a booster, will take up the immune response to levels that will be enough to protect against the delta variant,” the executive added, referring to the highly contagious virus strain that’s dominant in the U.S. and other countries around the globe. It’s not uncommon for vaccines to decline in effectiveness over time, Bourla stressed, adding there’s precedent for three-dose vaccines for other diseases.



Pfizer plans to formally submit data to U.S. regulators about the benefits of a third Covid vaccine dose by mid-August, Bourla said.



Earlier this month, when Pfizer first announced its plans, the Food and Drug Administration and the Centers for Disease Control and Prevention&nbsp;issued a joint statement&nbsp;that pushed back on the company, saying “Americans who have been fully vaccinated do not need a booster shot at this time.” &nbsp;



The CDC and the World Health Organization don’t recommend COVID booster shots at this time.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/pfizer-biontech-vaccine-appears-effective-against-mutation-in-new-coronavirus-variants-study/">Pfizer/BioNTech vaccine appears effective against mutation in new coronavirus variants -study</a></h3>



Dr. Kate O’Brien, WHO’s director of immunization, vaccines and biologicals,&nbsp;said Wednesday&nbsp;the organization is still researching whether a booster shot is needed to increase protection.



“We’re very clear on this, there’s not enough information to provide a recommendation at this point,” O’Brien said in a Q&amp;A interview posted on the organization’s social media accounts. “Again, this is a very hot topic, and there’s a lot of research going on to be able to provide an evidence-based recommendation.”



The results of Pfizer-backed study surfaced a day after the CDC&nbsp;reversed course on its prior guidance&nbsp;and recommended fully vaccinated Americans who&nbsp;live in areas with high COVID infection rates&nbsp;begin to wear face masks indoors again.



Coronavirus cases have jumped nationwide in recent weeks, a surge public-health officials attribute to the delta variant. While officials say the majority of COVID hospitalizations and deaths are in unvaccinated people, the delta variant is so contagious that vaccinated individuals can transmit the virus as easily as unvaccinated people, even in asymptomatic cases, CDC Director Rochelle Walensky said Tuesday.

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<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106917759-1627423812530-gettyimages-494579678-GDF_0226.jpeg" alt="" class="wp-image-410691" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106917759-1627423812530-gettyimages-494579678-GDF_0226.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106917759-1627423812530-gettyimages-494579678-GDF_0226-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106917759-1627423812530-gettyimages-494579678-GDF_0226-140x80.jpeg 140w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>U.S. President Barack Obama attends the game between the Chicago Bulls and the Cleveland Cavaliers on October 27, 2015 at the United Center in Chicago, Illinois. Gary Dineen | National Basketball Association | Getty Images</figcaption></figure>



Former President Barack Obama has become a strategic partner and minority owner in the National Basketball Association’s Africa business, which oversees the Basketball Africa League.



The NBA launched its Africa entity in May and values the business as a nearly $1 billion venture. NBA Africa oversees the BAL, which held its inaugural season last May, and has investors including Dikembe Mutombo, Grant Hill and Junior Bridgeman. The league said Obama would use his stake in NBA Africa to fund the Obama Foundation youth and leadership programs across Africa.



Terms of Obama’s equity stake were not disclosed.



Under the leadership of CEO Victor Williams, NBA Africa wants to establish corporate partnerships, expand content and media rights, and support local governments seeking to build new basketball arenas. The BAL includes 12 teams, and league games air in 215 countries and territories, and the NBA envisions basketball being a top sport throughout Africa in 10 years.



Read more: <a href="https://www.cnbcafrica.com/2021/former-president-barack-obama-joins-nba-africa-as-strategic-partner/">Former President Barack Obama Joins NBA Africa as Strategic Partner</a>



Currently, 55 players who are either from Africa or whose parents are native Africans play in the NBA. Team owners view the BAL as a way to scout and develop talent throughout the rapidly growing continent and another route to expand its global appeal. Sports betting partners could also test new technologies in the league.



Nigeria-based industrial group Yinka Folawiyo Group and Helios Fairfax Partners Corporation, an investment holding company that trades on the Toronto Stock Exchange under the ticker symbol “HFPC,” are investors in NBA Africa, alongside former NBA players Luol Deng and Joakim Noah are also investors. In addition, NBA commissioner Adam Silver and NBA Chief Operating Officer Mark Tatum have board seats.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106887249-1621862722565-gettyimages-1232959942-SPRWANDA-KIGALI-BASKETBALL_AFRICA_LEAGUE-INAUGURAL_SEASON.jpeg" alt="" class="wp-image-410692" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106887249-1621862722565-gettyimages-1232959942-SPRWANDA-KIGALI-BASKETBALL_AFRICA_LEAGUE-INAUGURAL_SEASON.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106887249-1621862722565-gettyimages-1232959942-SPRWANDA-KIGALI-BASKETBALL_AFRICA_LEAGUE-INAUGURAL_SEASON-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106887249-1621862722565-gettyimages-1232959942-SPRWANDA-KIGALI-BASKETBALL_AFRICA_LEAGUE-INAUGURAL_SEASON-140x80.jpeg 140w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>Benjamin Chukwukelo Uzoh 2nd R of Rivers Hoopers of Nigeria vies with Wilson Nshobozwa of Patriots Rwanda during the opening game of the the inaugural Basketball Africa League BAL in Kigali, capital city of Rwanda, May 16, 2021. Cyril Ndegeya | Xinhua News Agency | Getty Images</figcaption></figure>



“The NBA has always been a great ambassador for the United States—using the game to create deeper connections around the world, and in Africa, basketball has the power to promote opportunity, wellness, equality, and empowerment across the continent,” said Obama in a statement. “By investing in communities, promoting gender equality, and cultivating the love of the game of basketball, I believe that NBA Africa can make a difference for so many of Africa’s young people.”



Read more: <a href="https://www.cnbcafrica.com/2021/nba-lures-players-and-investors-to-form-africa-business-entity-valued-at-nearly-1-billion/">NBA lures players and investors to form Africa business entity valued at nearly $1 billion</a>



Obama praised the NBA’s “commitment to Africa, including the leadership shown by so many African players who want to give back to their own countries and communities.”



“We are honored that President Obama has become a strategic partner in NBA Africa and will support our wide-ranging efforts to grow the game of basketball on the continent,” added Silver via statement. “In addition to his well-documented love for basketball, President Obama has a firm belief in Africa’s potential and the enormous growth opportunities that exist through sports. NBA Africa will benefit tremendously from his engagement.”

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Former President Barack Obama is now a minority owner in NBA’s Africa business

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106917267-1627376925447-gettyimages-969639316-SOUTH_AFRICA_PORT.jpeg" alt="" class="wp-image-410608" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106917267-1627376925447-gettyimages-969639316-SOUTH_AFRICA_PORT.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106917267-1627376925447-gettyimages-969639316-SOUTH_AFRICA_PORT-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106917267-1627376925447-gettyimages-969639316-SOUTH_AFRICA_PORT-140x80.jpeg 140w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>Bloomberg | Bloomberg | Getty Images</figcaption></figure>



Transnet, a state-owned South African rail, port and pipeline company, appears to be in crisis mode after a <a href="https://www.cnbcafrica.com/2021/south-africas-transnet-hit-by-cyber-attack-affecting-some-container-terminal-operations-sources/">cyberattack</a> <a href="https://www.cnbcafrica.com/2021/south-africas-transnet-hit-by-cyber-attack-affecting-some-container-terminal-operations-sources/">hit the company last week.</a>



The logistics firm has been forced to halt operations at container terminals in Durban, Ngqura, Port Elizabeth and Cape Town, Bloomberg reported Tuesday, citing a note that Transnet sent to customers.



“Transnet, including Transnet Port Terminals, experienced an act of cyberattack, security intrusion and sabotage, which resulted in the disruption of TPT normal processes and functions or the destruction or damage of equipment or information,” the note reportedly reads.



“Investigators are currently determining the exact source of the cause of compromise and extent of the ICT data security breach or sabotage,” it continues.



Transnet did not immediately respond to a CNBC request for comment. Its website was still inaccessible on Tuesday morning and showing an error message.



The Johannesburg-based company, founded in 1991, said Thursday it was experiencing disruption on its IT network. On Friday, it said it had identified and isolated the source of the disruption.



Read more: <a href="https://www.cnbcafrica.com/2018/heres-why-nigeria-is-in-talks-with-south-africas-transnet/">Here’s why Nigeria is in talks with South Africa’s Transnet</a>



But the technical issues seem to be persisting. In the customer note, Transnet reportedly declared “force majeure,” which is when unforeseeable circumstances prevent a company from fulfilling a contract.



Transnet’s port in Durban handles over 60% of South Africa’s container traffic.



The company is taking “all available and reasonable mitigation measures” to limit the impact from the disruption, according to Bloomberg.



Last Friday, the head of South Africa’s Road Freight Association said in&nbsp;<a href="https://supplynetworkafrica.com/cyber-attack-on-transnet-cripples-the-movement-of-goods/" target="_blank" rel="noreferrer noopener">a statement</a>&nbsp;that he was “dismayed and gravely concerned”&nbsp;about the cyberattack.



Gavin Kelly, RFA’s CEO, said the attack has resulted in “massive delays and&nbsp;unreliability of the movement of goods across all modes of transport,” adding that road freight is bearing the brunt of the impact.



“The gates to ports are closed which means no trucks are moving in either direction,” he said. “This has immediate effect: the queues will get a lot longer, deliveries will be delayed and congestion will increase.”



The disruption puts Africa’s most industrialized economy in further jeopardy. South Africa is trying to recover after this month’s deadly riots following the imprisonment of former President Jacob Zuma.&nbsp;



Transnet has asked some of its employees who were not involved in running operations to take leave until the issues have been fixed, Reuters reported Tuesday, citing two sources familiar with the matter.

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<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106914167-1626861873395-gettyimages-1234061399-sindeyev-notitle210719_npeAJ.jpeg" alt="" class="wp-image-410239" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106914167-1626861873395-gettyimages-1234061399-sindeyev-notitle210719_npeAJ.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106914167-1626861873395-gettyimages-1234061399-sindeyev-notitle210719_npeAJ-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106914167-1626861873395-gettyimages-1234061399-sindeyev-notitle210719_npeAJ-140x80.jpeg 140w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>A bitcoin sign with a graph pictured in the background.
STR | NurPhoto via Getty Images</figcaption></figure>



<a href="https://www.cnbcafrica.com/quotes/btc=x/">Bitcoin&nbsp;</a>surged Sunday evening topping $39,000 for the first time since mid-June as sentiment turned bullish following a recent sell-off.



The cryptocurrency was trading at around $38,059.84 at 11:05 p.m. ET, according to CoinDesk data, up nearly 11% from the same time 24-hours prior. Bitcoin had previously hit a 24-hour high of $39,544.29, the highest level since June 16.



Bitcoin’s rally lifted other cryptocurrencies with&nbsp;<a href="https://www.cnbcafrica.com/quotes/eth=x/">ether&nbsp;</a>up 5.9% above $2,299.55. The entire cryptocurrency market added over $114 billion in value in 24 hours as of 11:05 p.m. ET, according to data from Coinmarketcap.com.



The rally comes after<a href="https://www.cnbcafrica.com/2021/catch-these-key-levels-for-bitcoin-next-after-its-break-below-30000-traders-say/">&nbsp;bitcoin recently fell below $30,000</a>&nbsp;after a global sell-off in stocks, sparking fears that it could plunge even further.



“I think we saw an accumulation period around 29-30K, indicating bullishness and a potential move towards $40K for Bitcoin,” said Vijay Ayyar, head of business development at cryptocurrency exchange Luno.



<h2 class="wp-block-heading" id="h-musk-dorsey-wood-in-focus"><a></a>Musk, Dorsey, Wood in focus</h2>



Twitter CEO&nbsp;<a href="https://www.cnbc.com/2021/07/21/jack-dorsey-hopes-bitcoin-will-help-bring-about-world-peace.html">Jack </a><a href="https://www.cnbcafrica.com/2021/ethereum-price-rises-after-elon-musk-confirms-he-owns-the-cryptocurrency/">Dorsey</a>, Tesla CEO Elon Musk and ARK Invest CEO Cathie Wood all recently spoke during a closely watched bitcoin conference called “The B-Word.”



Musk said that Tesla would&nbsp;<a href="https://www.cnbc.com/2021/07/21/elon-musk-says-tesla-will-likely-start-accepting-bitcoin-again.html">likely start accepting bitcoin for vehicle purchases again</a>&nbsp;as a greater share of bitcoin mining switches to renewable energy. In May, Tesla suspended vehicle purchases using the cryptocurrency out of concern over the&nbsp;<a href="https://www.cnbcafrica.com/2021/as-much-as-365-billion-wiped-off-cryptocurrency-market-after-tesla-stops-car-purchases-with-bitcoin/">“rapidly increasing use of fossil fuels for bitcoin mining.”</a>



Bitcoin mining is the energy-intensive process of creating new coins, which involves solving complex math problems. The computational power required to do so also consumes a lot of energy.



“The Chinese trading day has opened up, and the Elon/Jack/Cathie talk was super bullish,” said Alex Brammer of Luxor Mining, a cryptocurrency pool built for advanced miners.



There have been other bullish headlines for bitcoin. E-commerce giant Amazon is&nbsp;<a href="https://www.cnbc.com/2021/07/23/amazon-is-hiring-a-digital-currency-and-blockchain-expert.html">looking to add a digital currency and blockchain expert to its payments team</a>, suggesting it could be taking a closer look at bitcoin and other cryptocurrencies. An Amazon spokesperson said that the company is “inspired by the innovation happening in the cryptocurrency space and are exploring what this could look like on Amazon.”



These bullish moves have also contributed to a so-called “short squeeze,” according to bitcoin mining engineer&nbsp;Brandon Arvanaghi.



Investors who short bitcoin are betting that the price will fall further. But if the price goes higher, these investors look to cut losses and exit their short positions, which helps to push the price even higher.



“I think the extent of the jump was probably driven by over-leverage shorts,” Luno’s Ayyar said.



Meanwhile, some of the issues that have weighed on bitcoin’s price have begun to clear up. Over the past few months,&nbsp;<a href="https://www.cnbcafrica.com/2021/chinas-renewed-crypto-crackdown-wipes-nearly-300-billion-off-the-market-as-bitcoin-slides/">China has renewed its crackdown on cryptocurrencies</a>&nbsp;targeting mining and trading. And&nbsp;<a href="https://www.cnbc.com/2021/07/20/bitcoin-mining-environmental-impact-new-study.html">concerns over the carbon footprint of bitcoin mining are starting to wane</a>.



Luxor Mining’s Brammer said the uncertainty around the environmental impact of mining and the Chinese regulatory concerns have “worn off.”

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<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106914175-1626863135727-gettyimages-1329430069-210719-ce-pryzm-003_2021071921308010.jpeg" alt="" class="wp-image-410388" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106914175-1626863135727-gettyimages-1329430069-210719-ce-pryzm-003_2021071921308010.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106914175-1626863135727-gettyimages-1329430069-210719-ce-pryzm-003_2021071921308010-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106914175-1626863135727-gettyimages-1329430069-210719-ce-pryzm-003_2021071921308010-140x80.jpeg 140w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>Clubbers queue around the block at a few minutes to midnight waiting for Covid-19 restrictions to be dropped and for Pryzm nightclub to open its doors once more on July 18, 2021 in Brighton, England. Chris Eades | Getty Images News | Getty Images</figcaption></figure>



LONDON — Nightclubs and bars are fast becoming the new battleground in the fight against COVID-19 as the nocturnal economy re-opens in some countries and coronavirus cases soar, particularly among the young.



COVIID is seeing a resurgence in Europe as the highly infectious delta variant spreads among the unvaccinated and partially-immunized population, which is predominantly young as they were the last in line to receive a vaccine.



At the same time, a number of European countries decided to revive their night time economies, allowing bars and clubs to reopen to the public again, some after 16 months of closure which put many out of business.



In England, nightclubs were allowed to reopen as the clock struck midnight on Sunday with thousands of revelers soaking up the lights, music and lack of face masks and social distancing. Experts are already warning that England’s move is risky, particularly as other countries that reopened before it have now shut up shop (or club) again.



<h2 class="wp-block-heading" id="h-u-turns-elsewhere"><a></a>U-turns elsewhere</h2>



Other countries allowed their nightclubs to reopen in June, including the Netherlands and Spain, but both made rapid revisions and reversals given the COVID situation.



In the Netherlands, nightclubs reopened on June 26 but the government soon regretted the decision, performing a U-turn just two weeks later, closing them down again on July 10 as COVID cases surged in the country, particularly among the young. More than 1,000 COVID infections were linked to one music festival in the Dutch city of Utrecht earlier in July.



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On having to close its club doors until August 13, Melkweg, a venue in Amsterdam, described the move as “an annoying decision” but said that “due to the increasing number of infections, we believe that we cannot yet guarantee a safe environment for the public, employees and artists.” 



Lawrence Young, a virologist and professor of molecular oncology at Warwick Medical School at the U.K.’s University of Warwick, told CNBC on Wednesday that the country’s experience was a warning to England.



“If you look at the data from the Netherlands, it’s quite clear that it is that nightclub scene that has fueled this infection rate. It’s clear that opening up, in the way that they did, particularly with the nighttime economy, has been a real driver to massive levels of infection. They saw an eightfold increase [in cases] in a week and most of that is in the 18-29 year olds,” he noted.



“I don’t want to appear to be a doomster but when you look at the pictures from England at the turn of midnight [when clubs reopened on Sunday] it is really frightening and for me it really is inevitable that we’re going to have to reintroduce restrictions of some description” particularly, he said, while there were 18 to 30 year-olds not yet vaccinated or fully immunized.



<h2 class="wp-block-heading" id="h-the-virus-is-not-overcome"><a></a>The virus ‘is not overcome’</h2>



Similar to the Netherlands, Spain was optimistic that it could also reopen nightclubs, a key component of its nocturnal economy and tourism sector.



In June, the government announced plans to allow all of Spain’s 17 regions to reopen venues in time for the summer season. But with strict rules attached; clubs could stay open only until 3 a.m., there would be limits on the number of people allowed in venues (depending on the COVID situation in the region) and restrictions would stay in place until Spain reached a 70% vaccination rate.



A handful of regions opposed the move at the time but others went ahead, reopening their clubs around he weekend of June 26. Just like the Netherlands, however, cases soared among young people and several regions took the unilateral step to close venues again. Now, there is a myriad of varying rules on closing times, curfews and capacity across Spain, local media report.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106914172-1626862963943-gettyimages-1234027764-TPRUDENCIO_071621_BOT_VOL_TOQ_QUE_BCT-39.jpeg" alt="" class="wp-image-410389" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106914172-1626862963943-gettyimages-1234027764-TPRUDENCIO_071621_BOT_VOL_TOQ_QUE_BCT-39.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106914172-1626862963943-gettyimages-1234027764-TPRUDENCIO_071621_BOT_VOL_TOQ_QUE_BCT-39-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106914172-1626862963943-gettyimages-1234027764-TPRUDENCIO_071621_BOT_VOL_TOQ_QUE_BCT-39-140x80.jpeg 140w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>Young men with alcohol drinks in their hands make fun and shout on Barceloneta beach promenade on July 17 2021. Police evicts crowds from Barceloneta beach after Catalonia decreed the return of a 1am curfew given the rebound in Covid-19 cases as a result of the delta variant of the coronavirus. SOPA Images | LightRocket | Getty Images</figcaption></figure>



On forcing clubs in Barcelona to close in early July — just a couple of weeks after they had reopened — Catalonia’s regional government spokesperson Patricia Plaja noted that “we cannot pretend that we have overcome the virus. The data is worrying and the number of infections is growing at an exponential rate far beyond what we can afford.”



Gustavo Ferrer, co-owner and director of the Macarena Club in Barcelona, which had to shut its doors earlier in July, told CNBC Thursday that having to close “has been very hard for us, we have been closed for many months.”



The order to close was all the more frustrating, he said, because “we thought that the authorities had studied the situation well and had everything under control, but it was not like that and after two weeks we had to close again.”



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Ferrer said the Macarena hopes to be open again in mid-August or early September with vaccine passports and antigen tests a way to get the industry back on its feet.



The British government announced at the start of the week that it was planning on making COVID vaccination compulsory for nightclub goers and other crowded venues in England from the end of September. This prompted criticism from the industry including from Michael Kill, CEO of the Night Time Industries Association, who commented on Twitter Tuesday: “So ‘Freedom Day’ for clubs lasted around 17 hours then.”



<h2 class="wp-block-heading"><a></a>Doctors are worried</h2>



Medical experts are duly worried about the infection rate among young people.



Chris Lutterodt, a doctor and spokesman for the charity Healthcare Workers Foundation, told CNBC that he the link between nightlife and COVID infections was obvious given it’s “harder to maintain social distancing and enforce rules in this setting especially when alcohol comes into the mix.”



“As a GP [general practitioner] I have seen a lot of mainly young people presenting after catching COVID for advice and support. This mirrors what we are seeing with an increased number of infections mainly affecting the younger people. I have seen patients who have attended hen and stag parties over the last few weekends where a significant proportion of them have developed COVID and, in one case, 6 out of the 8 attendees,” he said.



“We need to remember that people who have recently been vaccinated with the first dose may not have sufficient immunity to protect them against catching COVID-19. It is important to follow government advice and social distancing measures where applicable to stop the spread.”



Lutterodt said governments need to ensure that there are proper procedures in place before opening night time industries “if we are to avoid another spike in cases and re-closing of nightclubs which have really suffered throughout this pandemic.”



As it is, however, he added that he was concerned a reopening of clubs will create “the perfect storm for an increase in cases and subsequent hospitalization especially over the autumn and winter months where&nbsp;we know the NHS (the National Health Service) is usually under tremendous pressure.”

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