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By Val Boje 
6h ago
Pretoria – President Cyril Ramaphosa has announced an extraordinary R500 billion aid package to stimulate the economy and protect millions of South Africans from hunger and social distress during the Covid-19 pandemic.
He was addressing the nation on additional economic and social aid measures as part of the national response to Covid-19, with a new speech promised for Thursday in which South Africans can expect to hear more about the measures beyond the 35-blockade. days.
Ramaphosa said a gradual approach would be used to end the blockage, as a balance was needed to prevent a massive and uncontrollable resurgence of the disease.
The economic response to the national disaster could be divided into three phases, Ramaphosa said.
The first would be measures to mitigate the worst effects of the pandemic on companies and individuals; second, stabilize the economy with a massive package of social aid and economic support, and finally, boost the economy as the country emerges from this disaster.
A priority was to provide relief from hunger and social distress that have dramatically deepened in communities across the country as a result of the closure.
The measures include an increase in child support grants of an additional R300 next month and R500 per month from June to October.
All other grant recipients will receive an additional monthly R250, while a special R350 coronavirus grant per month would go to those who are unemployed and do not receive any other form of grant or UIF payment.
He said the government acknowledged that its food distribution capacity had not met the huge demand in recent weeks, and that the Department of Social Development, working with NGOs and community organizations, would distribute 250,000 food packages in the next fortnight.
Ramaphosa said the R500bn package aimed at fighting the pandemic was made up of R130bn from the current budget with the balance raised from local sources as well as from international partners and financial institutions.
Because the coronavirus pandemic had caused job losses, an additional R100 billion was set aside to protect jobs, with R40 billion for income support payments for those whose employers were unable to pay their wages.
He said additional R2bn would help SMEs and spaza store owners.
Various other support measures would assist artists, athletes, technical personnel, recyclers and participants in public works programs.
A R200bn loan guarantee scheme would help businesses with operating costs, including supplier salaries, rent and payment, and numerous other schemes and tax breaks were announced to assist businesses, the details of which would be developed by the Finance Minister Tito Mboweni.
Ramaphosa once again thanked the public for their strength and sacrifice, saying that the blockade, despite its devastating impact on the economy, had been the necessary response and that South Africa would spare no effort or expense to support and protect its people. of the damage.
Pretoria News
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