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President Cyril Ramaphosa said the government had made great strides in plotting a way forward and the country was out of the worst of the economic turmoil.
President Cyril Ramaphosa during his speech on COVID-19 measures on September 16, 2020. Image: GCIS
JOHANNESBURG – President Cyril Ramaphosa promises that the Cabinet will finalize a comprehensive economic recovery plan in the coming weeks.
He announced Wednesday night that the economy would open almost fully as the nation moves toward lockdown level one next week.
• READ: President Ramaphosa’s full speech on reducing the blockade to alert level 1
But months of lockdown have left South Africa’s economy in shambles.
Ramaphosa said they had made progress on the plot of a way forward and that the country was out of the worst of the economic turmoil.
“Nedlac’s social partners have made tremendous strides in an ambitious social pact for economic recovery. This represents a historic milestone for our country, demonstrating what can be accomplished when we come together to face an urgent crisis.”
The government has already allocated and reprioritized R500 billion that has been spent on various interventions to keep the economy afloat.
These include special UIF payments, which have now been extended for another month.
“The benefit of the FIU has been extended until the end of the national state of disaster to ensure that those workers and companies whose income remains at risk can continue to receive support.”
The R200 billion loan guarantee scheme that is meant to keep businesses afloat during the pandemic and associated lockdowns has also been modified.
“Adjustments have been made to the Loan Guarantee Scheme to make it easier for companies of any size to access credit at low interest rates, with delays of up to twelve months in payments. We encourage all companies that have faced an interruption of their earnings seek the support of this scheme while the economy recovers. “
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