This paper investigates the long-term impacts of financial crises on economic growth in Durban, South Africa, using quarterly data spanning from 1995Q1 to 2024Q1. Applying a Time-Varying Parameter Vector Autoregressive (TVP-VAR) framework. The study captures the evolving dynamic responses of key economic indicators, including GDP growth, gross fixed capital formation, employment, and household consumption, to shocks in a financial crisis index. Findings reveal that financial shocks induce pronounced hysteresis effects characterized by an initial transient increase in GDP followed by significant contractions and sluggish recovery, highlighting persistent structural scarring.