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Remgro published its financial results for the year ended June 30, 2020, showing the devastation of the COVID-19 pandemic and the closure of the company.
Total earnings per share declined 61.3% and earnings per share from continuing operations decreased 68.7%.
With a diverse portfolio of companies, Remgro is in a good position to assess the impact of the lockdown on the South African economy.
Remgro said in a press release that the pandemic and the lockdown “have brought despair and devastation to millions.”
“In South Africa, lives and livelihoods have been lost, with family finances decimated and many starving in much of the country,” he said.
In his presentation of results, Remgro highlighted that the initial level 5 lockdown brought the local economy to a standstill.
The prohibition of alcohol and the closure of restaurants were two examples of where entire industries were prohibited from operating.
Even after some of the restrictions were lifted, many industries such as tourism continued to struggle to operate.
The impact of the lockdown rules on the South African economy was immediate and devastating.
The country’s gross domestic product (GDP) fell by 51% in the second quarter of the year, reflecting the immense damage caused to the economy by the blockade.
The latest Quarterly Survey of the Active Population of Stats SA also revealed that the number of employed persons decreased by 2.2 million to 14.1 million.
This unprecedented change is the largest decrease from quarter to second since the survey began in 2008.
The FNB / BER Consumer Confidence Index (CCI) has also shown that the pandemic and related economic constraints struck a severe blow to consumers’ willingness and ability to spend.
The CCI tumbled from an already depressed level of -9 in the first quarter to a shocking -33 in the second quarter.
Remgro published three graphs, reproduced below, that clearly illustrate the impact of the lockdown on the South African economy.
Decline in real GDP
Unemployment
Consumer confidence
Now Read: Lockdown Has Smashed IT Jobs In South Africa, But Ecommerce Is Booming
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