Businesses are likely to support local locks in South Africa, but only if these conditions are met



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With parts of the Western Cape and Eastern Cape seeing an increase in coronavirus cases, it seems increasingly likely that the country could see the introduction of localized lockdowns.

While these increases would ideally be controlled through existing rules, Business Leadership South Africa (BLSA) Executive Director Busi Mavuso said the country will see some areas with infection rates that cannot be contained in regulations alone. level 1.

“From a business perspective, it is critical that we leave as much of the economy to operate as possible,” Mavuso said.

“That means that when we must shut down economic activity, we must do so in a way that targets the areas where infection rates are most in need of control, with minimal collateral damage to the overall economy.”

Mavuso said this means:

  • Keep the locks localized;
  • Allow the rest of the country to function as close to normal as possible;
  • Establish clear indications on what infection rate will trigger these blockages; Y
  • Clearly indicate which rules will apply.

“I can understand the temptation of political leaders to make radical national decrees. They are simpler to enforce and non-compliance is easier to identify. But the cost of simplicity is unnecessary financial damage. “

From a public policy perspective, Mavuso said the government should strive for a regional approach to the blockades in order to deliver the best results.

He said the country also needs a policy approach that sets out what infection rate levels will trigger additional measures and what rules will apply.

“If we do establish it, then we can see the complexity involved in enforcing them. I hope that companies will widely support this approach and add the necessary resources to manage compliance, ”he said.

Viability?

While the Western Cape government has made it clear that South Africa cannot afford another blockade at the national level, along with the Eastern Cape, they have raised the implementation of stricter restrictions on hotspot areas, a type of mini-blockade or quick blockade. , similar to those seen in Europe.

Weekend reports indicated that these localized blockages could be linked to level 3. However, economists at Stellenbosch University’s Bureau of Economic Research (BER) have disputed the plausibility or feasibility of implementing this level of restriction.

“While in theory, local or instant closures could be a sensible approach to ensure that a region’s healthcare system can cope with a surge in cases, it will be challenging to implement in practice, especially before the holiday season. “, said.

“Furthermore, the local blockades will be a setback for the economic recovery in those regions.”

The top markers for lockdown level 3 included restrictions on on-site alcohol consumption, leisure travel, social visits, large meetings, and businesses with more than 100 employees.

Under these rules, people were prohibited from leaving their homes except for traveling to and from work, shopping, exercising during established hours, or for emergencies. Hotels and lodgings were closed and domestic travel for leisure purposes was prohibited.


Read: What would ‘instant’ lockdowns mean for South Africa’s economy



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