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The strict coronavirus blockade, which ran from April 16 to the end of the month, will not be extended again, President Cyril Ramaphosa announced Thursday night.
However, the gradual reopening of the economy means taking a “risk-adjusted” approach, and restrictions will be lifted only in certain sectors, the president said.
Fin24 previously reported that the government was adopting an approach based on five alert levels, ranging from level 1, where all sectors are fully operational, to level 5, that is, the total blockade. South Africa is currently in full closure.
Starting May 1, the country will move up to Tier 4. Here’s what that means.
Some companies will reopen, but it will not be the same as always.
“Some activities will be allowed, subject to extreme precautions,” said the president.
Companies that can resume activity may do so under specific conditions. All companies must adhere to detailed health and safety protocols to protect their employees, and plans must be established for disease surveillance and to prevent infection.
The talks are still ongoing.
Ramaphosa did not announce which businesses would be allowed to reopen, though it said cigarettes and some other additional products would be for sale. Retail food stores that are already open are expected to be able to sell the full line of products within their existing stock.
When evaluating whether a sector would be allowed to operate, its economic contribution, the effect on livelihoods and transmission risk in each sector would be considered, he said.
The ministers will give a detailed briefing on the classification of industries and how each is affected in due course. Each industry will have the opportunity to make presentations before the regulations are published.
The return to business will be gradual
Firms that open will do so gradually, Ramaphosa said, first preparing the workplace for a return to operations, followed by a return of the workforce in batches of no more than a third.
“In some cases, a sector will not be able to return to full production during level four,” he said.
Level adjustments will be determined by the NCC
The National Command Council will determine what level is needed based on an assessment of the infection rate along with the capacity of the health system, Ramaphosa said.
Working from home is still the first option
“Businesses will be encouraged to work from home when possible,” said Ramaphosa. “All personnel who can work remotely must be able to do so.”
Travel regulations will remain strict
The tourism industry is unlikely to experience relief any time soon, as the borders will remain closed to international travel, except for the repatriation of South African and foreign citizens.
Travel between provinces will not be allowed, except for the transport of merchandise or exceptional circumstances such as funerals.
Public transport will operate … with strict rules
Public transportation will be subject to limitations on the number of passengers, and there will be strict hygiene regulations.
All passengers must wear masks, Ramaphosa said.
Sorry, there are still no bars or shebeens
Bars and shebeens will remain closed, as will conference and convention centers. Concerts are still prohibited, as are sporting, religious, and cultural events. All meetings, except funerals and business meetings, are prohibited.
“The coronavirus is transmitted by contact between people,” said Ramaphosa. “If people don’t travel, the virus doesn’t travel.”
The President stressed that while limiting economic damage was crucial, the government also acted on the advice of scientists.
“The action we must take now must be measured and incremental,” he said.
The president announced a R500 billion stimulus package on Tuesday in a bid to mitigate the impact of the protracted blockade on South Africa’s expected economy.
The announced interventions included additional grants, various tax relief measures, R100 billion budgeted to preserve and create jobs, a comprehensive food package delivery program, and R20 billion of additional budget to boost the provision of municipal services.
While R130 billion will be reallocated from the existing budget, R200 billion will be provided in the form of a loan guarantee scheme, in association with major banks, the National Treasury and Banco de la Reserva SA. The remaining R170 billion would be obtained from Covid-19 support loans from international financial institutions, global partners and local sources such as the FIU.
The country was already in recession before the coronavirus hit, after two consecutive quarters of negative growth, and Moody’s downgraded its sovereign credit rating.
The Treasury has projected a deep recession during 2020, while the Reserve Bank has said that a contraction of up to 6.1% is likely. For its part, the International Monetary Fund has projected a contraction of 5.8%, while Moody’s has suggested a more conservative -2.5%.
South Africa’s economy experienced a 1.5% contraction following the 2008 global financial crisis.
Job losses in South Africa due to the coronavirus pandemic have been projected at 370,000, according to the Reserve Bank, to one million, according to the preliminary model of Business for South Africa, a trade alliance formed in March in response to the pandemic. . This would follow the pattern of record job losses in the United States, which, according to the latest job data released Thursday, has eliminated the gains recorded in the boom after the Great Recession.
