NATIONAL NEWS - A R500-billion social relief and economic support package was announced by President Cyril Ramaphosa on Tuesday night in response to the devastating effects of the coronavirus on people's livelihood.
The President did not touch on the much-anticipated subject of lifting the lockdown, but will make announcements regarding this today, Thursday 23 April.
However, he did say that the re-opening of the economy will have to be gradual to prevent the rapid spread of the virus. The massive relief package amounts to 10% of South Africa's GDP. It will be funded by reprioritising R130-billion within the current budget and drawing from the Unemployment Insurance Fund (UIF) as well as international sources. The World Bank, International Monetary Fund, BRICS New Development Bank and African Development Bank have been approached.
Funding
- R20-bn to fight the pandemic (providing personal protective equipment for health workers and community screening, increasing testing capacity, providing additional beds in field hospitals, ventilators, medicine and staffing).
- R20-bn to municipalities for provision of emergency water supply, increased sanitising of public transport and facilities, and providing food and shelter.
- R50-bn for a six-month coronavirus grant. Child support grant beneficiaries will receive extra amounts from May through October and unemployed people who receive no other grants qualify for R350 for the next six months.
- Sassa will roll out food assistance faster, through vouchers and cash transfers.
250 000 food parcels will be distributed over the next two weeks. - A further R2-bn will be made available to SMMEs, spaza shop owners and other small businesses.
- Measures are being put in place to provide financial relief to businesses in the form of loan guarantee schemes and various tax relief measures.
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