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Many prominent South African business executives are calling for the closure to end to save the economy and people’s lives.
The blockade has already claimed many companies, including Time Freight, Rebel Tech, Associated Media Publishing and Caxton Magazines.
Many prominent South African companies have also requested the trade bailout, including Edcon and Comair.
These companies were affected by strict closing regulations that made it difficult, or in some cases impossible, to operate.
Economist Mike Schussler said While the slightly relaxed Tier 4 rules did have a positive economic impact, it is not as significant as many people think.
He said that data from the BankservAfrica point of sale shows that the number of transactions increased by 20% between level 5 and level 4, but it is still well below normal levels.
Schussler said the country is seeing a very desperate GDP situation, which is compounded by the absence of sin tax collection.
He stressed that the economic impact of the blockade will also lead to loss of life. “It is not the economy versus life, but life versus life,” said Schussler.
Nick Hudson of Pandemic Data and Analytics (Panda) echoed Schussler’s views. He warned Blocking COVID-19 can cause 29 times more deaths in the long term than the virus.
Companies calling for an urgent end to the South African blockade
Many business executives are now calling for an end to the blockade, including Allan Gray’s CIO Andrew Lapping and Accelerate Cape Town CEO Ryan Ravens.
Talking to CNBC AfricaLapping said that even with blocking it is not possible to stop the spread of the virus.
He said the spread will continue for the next few months until it reaches a peak. This gives the government an option:
- They can let people die from COVID-19.
- They can let the same number of people die from COVID-19 and destroy the economy.
“We urge the government to look at the big picture and see how many lives are lost due to poverty and the difficulties caused by the blockade,” he said.
Ravens agreed with Lapping, saying that the blockade will not eradicate the virus and that no country can maintain a blockade for 18 months until there is a vaccine.
“We already know that we have to open up the economy while the virus is still in play,” Ravens said.
He said the country is losing money daily with the prolonged blockade, without any clear guidance on how to get out of it.
Lapping added that the government has given no reason for the prolonged blockade and what it wants to achieve.
The first lockdown, he said, was clearly aimed at preparing hospitals for the expected influx of COVID-19 cases. This is already complete.
“Subsequently, no reason has been given to continue the blockade. No one knows what is the reason behind the government’s thinking, “he said.
Furthermore, Ravens said that social distancing is simply not possible in disadvantaged communities.
“You have to ask yourself, why do we keep destroying the economy when we know that social distancing is no longer happening,” he said.
Interview with Andrew Lapping and Ryan Ravens
Now read: Blocking Rules – Level 4 vs. Level 3
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