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Starting May 1, smokers will be happy to know that they can
lights up once more, and some companies may operate under
specific conditions, as the government gradually begins to raise the coronavirus
emergency shutdown.
In a speech to the nation on Thursday, the President
He said that while progress has been made in limiting the spread of Covid-19,
blocking cannot continue indefinitely.
It was instituted on March 26. Various businesses, no
considered essential services, they have had to be temporarily closed, leading to a loss of
income for many South Africans.
The Reserve Bank has projected that the impact of the
The Covid-19 crisis would see SA’s economic contract at 6.1%. Moody’s rating agency
projects a contraction of 2.5% and the International Monetary Fund (IMF) 5.8%
contraction.
A draft leaked document from the presidential office on the
risk-adjusted approach to lifting restrictions, warned that the longer
the blockade extended, the more severe the economic impact would be. He showed that
a prolonged blockage would lead to a halt
levels of reductions in tourism, creative (arts, music and film), such as
as well as the construction and aviation industries.
On Tuesday Ramaphosa announced a historic R500 billion.
coronavirus support package in an effort to provide relief to the vulnerable in the south
Africans
But although some hailed the stimulus plan, there were concerns
on how it would be financed and the resulting strain on the economy and tax revenue,
Rand Merchant Bank analyst Matete Thulare said.
“The truth is that we have had one of the strongest and most
strict blockages that we have seen around the world. Obviously, that has come to
the expense of economic activity, “he said.
“I think we should make sure that as much as we open
on top of the phased economy, we need to make sure we don’t have long-term
stress on the economy, “Thulare said.
In his speech on Thursday, Ramaphosa recognized the need
resume economic activity for the benefit of South Africans. “Our people
I need to eat. They need to earn a living. Companies need to be able to produce
and to trade. They need to generate income and keep their employees
employment, “he said.
Ramaphosa said an uncontrolled lifting of restrictions
result in a massive resurgence of infections, which to date have increased to 3
953 confirmed cases with 75 deaths, potentially requiring a hard second
emergency shutdown.
For this reason, a risk-adjusted strategy would be adopted.
to lift restrictions. Ramaphosa described him as a “deliberate and cautious
approach “- in which there would be five levels of coronavirus. These levels
be applied at the national level, at the provincial level, as well as districts and subways, and
they are based on the transmission level.
According to the president, the system will work as follows:
- TO
level 5, drastic measures must be taken to contain the spread of the virus.
Only essential services can operate.
level 4, you can resume some activity, subject to extreme
precautions.
level 3, some restrictions will be relaxed, including work and
social activities.
level 2, there will be further relaxation of restrictions. Physical
distancing and restrictions on some social and leisure activities
It is still required.
level 1, the most normal activity can be resumed, with precautions and health
guidelines followed at all times.
South Africa is currently at level 5, and since May 1 we will
go to level 4.
Gain time?
Chief Econometrix Economist Dr. Azar Jammine was not
convinced by the new measures announced by the president, describing them as
“vague”.
“It almost gave me the impression that they are not quite there yet
sure what to allow and what not to allow, “Jammine said.
Jammine said there were not enough details given by the
president, and it seemed like he was buying time.
According to a draft document that details the different
tiers, at tier 4, retail food stores can sell a full line of
their products. Open pit mines can operate at full capacity and other mines
only 50% of its capacity. Formal recycling of waste and fiber optic and IT services.
they are also among those who can operate.
The president said that at this stage the borders will remain closed
and international travel will not be allowed, except repatriation
of South African citizens and foreign citizens. Travel will not be allowed.
between provinces, except the transport of goods and exceptional circumstances
like funerals, Ramaphosa said.
The sale of cigarettes will be allowed. Additional
The categories of goods that can be sold will be clarified by the relevant ministers.
In the future, the National Coronavirus Command Council
determine the alert level based on the evidence of the infection rate and the
ability of the health system to provide care.
Breakdown by sector
Different sectors have been examined in terms of the risk of
transmission, the impact of the blockade on the sector and livelihoods and
Economic contribution of the sector. The relevant ministers will have a
information on the classification of different industries and industrial bodies can
they will also be allowed to make presentations before new regulations are published,
Ramaphosa said.
Ramaphosa has said that sectors or companies that require
Large numbers of people gathered in small spaces over long periods of
time does not have permission to operate. These include sitting hotels and restaurants,
bars and shebeens, conference and convention centers, sporting events, cinemas,
theaters and concerts, as well as religious and social gatherings.
The president has also advised industries to encourage
employees to work from home. Various measures will be instituted to ensure
Workplaces have health protocols to detect symptoms in employees
and to ensure that hygiene is maintained.
On Friday, Finance Minister Tito Mboweni will be among the
Ministers of the economic group who will inform the nation. Mboweni is expected to unpack
financing of the R500 billion support package announced by Ramaphosa in
Tuesday.
Ramaphosa previously announced that a quantity of R130
one billion will be prioritized within the national budget. R200 billion is to be
provided by a loan guarantee scheme and the remaining R170 billion would be
from Covid-19 support loans from international financial institutions,
global partners and local sources such as the Unemployment Insurance Fund.
