Traffic jams cost business a pretty penny

By Staff Writer
The South African Chamber of Commerce estimates that traffic jams cost South African business roughly R15m an hour.

"This estimate does not include fuel and vehicle maintenance costs, the cost of late freight deliveries, or other associated transport and business opportunity costs," Sacci said in a statement on Thursday.

"It also does not include costs related to accidents and collisions," it said.

Sacci believe that the cause of congestions lies in poor maintenance of infrastructure which leads to potholes, as well as street markings being missing, broken traffic lights and delays in how accidents are dealt with.

"These conditions are exacerbated by the extensive rojects on motorways, which promise improvements in the future, but at present constitute a cost to the business community," it said.

"Coupled with poor driving habits, these conditions also result in unnecessary collisions that compound the congestion."

Sacci based its estimates on 90 000 cars that travel between Pretoria and Johannesburg during 6:30am and 8:30am daily, during the week - the calculation further assumed that every vehicle had one person in it on average and their incomes were around R170 an hour.

"Costs such as these impede South Africa's already hesitant recovery from the global economic crisis," it said.

"They constitute a hidden, but significant negative impact on small and medium size enterprises in particular, and add to the cost of doing business."

 

Remember that you can follow us on Twitter here!  

Recent Articles

Featured Which one should you get first: life cover or a retirement annuity?

Financial planning can be a brain-racking process because it means making difficult decisions such as choosing the most suitable products for you. The one challenge faced by those who are financially constrained is which product to choose: life cover or a retirement annuity (RA).

Read more

Should you save or invest your money?

While saving means putting away cash for future use, investment involves purchasing assets which will yield good returns in the future.

Read more

Retirement annuities compared – pick the one for you

When selecting an RA you must know the type of annuity you are investing in. Retirement annuities are divided into two categories: traditional and new generation annuities.

Read more

Recent tax changes – how do they affect you?

In January this year, various amendments to the Taxation Laws Amendment Bill and the Tax Administration Act were announced. While some changes will benefit you, others could be to your disadvantage. Justmoney looks at how some of the recent changes will impact you.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Save R100 when you buy a tracker at Takealot

Price: R289
When: Daily
Where: Online

Pamper yourself and partner for less at Bakwena Day Spa

Price: From R999
When: Until 31 July
Where: Hartbeespoort

Pay only R35 for the new Nandos Boujee Bowl

Price: R35
When: Daily
Where: Nationwide