Following a cabinet meeting with Nedlac, the national coronavirus command council, the president’s coordinating council, Premiers, MEC's, and Metro Mayors. Tonight President Cyril Ramaphosa addressed the nation on the economic and social response to the global crisis.
The president stated that the pandemic requires an economic response that is equal to the scale of the disruption it is causing. He also stated that the first stage of the first economic response phase started in mid-march. The majors taken in mid-march included the release of Disaster Relief Funds, emergency procurement, wage support, and funding small businesses. "We are now embarking into the second phase of our economic response to stabilize the economy, address the extreme decline in supply and demand, and to protect jobs" said the president.
The president announced an economic support package of R5bn which makes up about 10% of the GDP. After days of consultation with stakeholders, they came up with an extraordinary health budget to respond to the pandemic, relief of hunger and social distress, support for companies and workers, and lastly the phase reopening of the economy. The funds will be raised from local sources such as the UIF and global partners and international financial institutions that have been approached.
Some of these institutions have created financial packages for countries that are addressing the coronavirus crisis. R20bn will be directed towards addressing efforts to this pandemic, which are to successfully manage the anticipated surge in cases and ensure that everyone who needs treatment receives it, provide on additional expenditure on personal equipment for health workers, community screening, and increase in testing capacity, additional beds in filled hospitals, medicine, and staffing.
READ: South Africa Might Be On Lockdown For More Than 6 Months
R20bn will be made available for the municipalities for the provision of emergency water supply and increased sanitation of public transport and also provide food and shelter for the homeless. R50bn will go towards relieving the stress to the most desperately affected citizens. To reach the most valuable families, there will be a temporary 6 months coronavirus grant. Therefore, child support grant beneficiaries will receive an extra R300 in May and an additional R500 per month from June to October. All other grant beneficiaries will receive an extra R250 per month for the next 6 months.
Furthermore, a special COVID-19 social relief of distress grant of an amount of R350 a month for the next 6 months will be paid to individuals who are currently unemployed and do not receive any other form of a social grant or UIF payment. The department of social development will issue the requirements for access and application for this funding. Sassa is to implement a technology-based solution to roll out food assistance at scale through vouchers and cash transfers to ensure that help reaches those who need it. Watch the video below for more information.
No comments:
Post a Comment