/ 1 December 2000

Life is cheap, death costs

Paul Kirk

As HIV/Aids, cholera and drive-by shootings grip KwaZulu-Natal, two businesses are booming funeral parlours and money-lenders.

Seven years ago Durban had six funeral parlours and Pietermaritzburg four. Today Durban has 55 and Pietermaritzburg 49. Durban also has five factories producing coffins.

In the wake of this boom in the funeral business, the money-lending business has also blossomed as relatives spend vigorously to give the dead the best send-off possible.

Gerald Rossouw of Avbob said the funeral business is booming. Avbob and many other funeral parlours are members of the National Funeral Directors Association of South Africa, but there are also many parlours that are not.

“A lot of people think the funeral busi- ness is a profitable one and decide to get involved. Unfortunately a lot of parlours open one week and close the next,” said Rossouw. “It is impossible to take a guess at how many funeral directors there are, but it is a lot. We hear of many parlours coming and going but we have no idea how many parlours are operating at the moment.”

He said so many funeral parlours are opening up that some operators even have their specialised burial equipment stolen from the graveside by competitors.

“The coffin-lowering equipment is what generally gets stolen and the equipment is not cheap, costing around R14 000. It is clearly being stolen by operators who want to get into fune-rals, but thankfully it is a rare occurrence.”

As for the micro-lenders, a tour of Durban reveals that ideal real estate for micro-lenders is adjacent to or in close proximity to a funeral parlour. One large funeral parlour in Moore Road is flanked by two micro-lending establishments.

After visiting the funeral parlour to select a coffin, many mourners head straight to one of the cash loan businesses.

In Pinetown two funeral parlours are in competition with each other, practically facing each other across the road. They are surrounded by no less than four micro-lending establishments all within 150m of the parlours.

The operating hours of the loan establishments match the business hours of the adjacent funeral parlours.

Nine of the 14 micro-lending premises inspected by the Mail & Guardian this week specifically mention loans for funerals in their windows.

Several clerks at the loan companies said about 90% of their business comes from funerals. They also told the M&G that they regarded proximity to a funeral parlour as a big bonus to their businesses.

“Funerals cost thousands of rands and some coffins can set a family back R5 000 quite easily. Very few normal people can afford that sort of expense and that is where we come in. We provide a service and for that service we make a tidy profit.

“If I were to sell this business the location would be a big bonus to any buyer. I would want a premium for my business because of its situation,” said one micro-lending operator, who did not want his name mentioned.