The recent unrest which resulted in the destruction of property and looting of shopping centres would affect South Africa's economic recovery, said the Finance Minister Tito Mboweni on July 28 at a virtual media briefing.

Mboweni said the unrest would impact future gross domestic product (GDP), business confidence and reduce private investment.

"This will constrain economic recovery at a time when business confidence is already weak and at levels last seen in the fourth quarter of 2014," he said.

Mboweni said that damage to property will cost Sasria between R15 billion to R20 billion (1-1.35 billion USD) in claims.

Sasria is a state-owned company and the only short-term insurer that provides cover to all the people and businesses that have assets in South Africa, as well as government entities, against special risks such as civil commotion, public disorder, strikes, riots and terrorism.

"There is widespread damage to shops and malls, network towers, post offices, factories, roads and freight trains. Hundreds of ATMs have been destroyed, making access to cash harder," he said.

Mboweni said the National Treasury was projecting that the country's economy would only return to pre-pandemic levels in the fourth quarter of 2023.