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By loyiso 
40m ago
Johannesburg – All eyes are on President Cyril Ramaphosa as he prepares to address the nation once again on Thursday night with a keen interest focused on blockade regulations that can be eased.
However, the President has been advised to take a tiered approach to reopen the economy and ensure that workers are protected from Covid-19.
Ramaphosa this week unveiled its administration’s R500 billion socio-economic response to the deadly coronavirus this week and pledged to provide details of steps to be taken to reopen the economy beyond the 35-day national shutdown.
The response it announced Tuesday includes R100 billion to protect and create jobs, R50 billion in temporary social aid, R40 billion for the health response and emergency water supply, increased sanitation of public transport and facilities, food and shelter for the homeless.
Ramaphosa also secured a R200bn loan guarantee scheme with the main banks, the National Treasury and Banco de la Reserva SA to cover the companies’ operating costs, such as salaries, rents and supplier payments.
Economist Mike Schussler said Wednesday that Ramaphosa had to allow most stores and factories to operate again with strictly mandatory social distancing, while schools should be reopened in such a way that they do not affect children.
Schussler suggested that restaurants should be closed for an additional week or two, while members of the public should be forced to wear masks.
According to Schussler, public transport should also be resumed with a social distance room and subsidized travel so that transport operators can support fewer passengers. He said that public transport subsidies should be in place for two months until the coronavirus curve flattens out and companies should coordinate their phased opening at different times to ensure that public transport is not crowded and social distancing is maintained.
Internationally recognized epidemiologist and infectious disease specialist Professor Salim Abdool Karim, also a senior government advisor at Covid-19, also suggested a systematic approach to keep infection rates low and facilitate staged blockade.
Karim warned that an abrupt return to normal could increase the spread of the virus and the plan should include a systematic reduction of the blockade over several days and a gradual approach to reduce the risk of rapid transmission, taking into account economic imperatives and social disruption. .
Cosatu supported Ramaphosa’s plans to gradually reopen the economy as long as adequate protocols were developed to keep workers safe from the disease.
“Workers and employers must begin a consultation process at the bargaining councils to conduct risk assessments,” said Cosatu spokesman Sizwe Pamla.
The federation has asked large corporations to free up their own resources and match the amount the government has put on the table. However, Cosatu believes Ramaphosa’s Covid-19 social and economic response is still R500 billion and has warned against corruption in the distribution of funds representing 10% of GDP.
“Nothing less than a R1 trillion stimulus plan will be enough to turn our already bleeding economy and save workers from the pain of dizzying unemployment levels,” Pamla said, adding that every penny should go to fulfill its purpose.
“Corruption of any kind must not be tolerated. “The ANC-led government must decisively lead to eradicate all forms of corruption that could raise its ugly head as we strive to raise funds to combat the spread of Covid-19,” the federation said.
In addition to the Unemployment Insurance Fund and the re-prioritization of R130bn from the current budget, which will be presented by the Minister of Finance, Tito Mboweni, on a date that Ramaphosa will announce today, global partners and international financial institutions have also been contacted.
Schussler said the country should be able to access at least R400bn through the special drawing rights of the International Monetary Fund (IMF) and the special coronavirus funds established by the IMF, the World Bank and the New BRICS Development Bank.
Public sector union Nehawu on Wednesday demanded that Mboweni prioritize paying pay increases for frontline workers fighting Covid-19 with immediate effect when he reviews the budget and reverses the decision to cut the public service bill.
While it is unclear whether the country’s blockade will extend beyond April 30 or not, the president of the Klerk FW Foundation, Theuns Eloff, says that an unlimited blockade will have serious economic consequences for the country. In an article published Tuesday, Eloff argued that it seemed logical and responsible to immediately mitigate closing regulations so that the economy could begin to recover.
“It is absolutely necessary that the debate on Covid-19 and the blockade be deepened to include the negative consequences of the current blockade, including future deaths related to the economy caused by the deepening of poverty.
“Finally, it is very important that President Cyril Ramaphosa balance the economy-related deaths and suffering and the health-related deaths before he and his cabinet decide to relax the closure regulations,” he said. He added that even Karim admitted that the country has already used the benefits of the blockade. “This is a clear indication that we now have to seek to alleviate the blockade immediately,” he said.
Political Bureau
* For the latest on the Covid-19 outbreak, visit the IOL #Coronavirus trend page
** If you think you have been exposed to the Covid-19 virus, call the 24-hour government hotline at 0800 029 999 or go to SA Coronavirus for more information.
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