Breaking: Ramaphosa announces R500bn support package for SA

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Breaking: Ramaphosa announces R500bn support package for SA

10:03 CAT | 21 Apr 2020

Cyril Ramaphosa. [Picture: Esa Alexsnder]

Ramaphosa says the Covid-19 pandemic requires an economic response equal to the scale of disruption it is causing

President Cyril Ramaphosa has announced a R500bn economic support package for SA, which amounts to 10% of the country’s GDP.

Ramaphosa said the Covid-19 pandemic required an economic response equal to the scale of disruption it was causing.

The president was addressing the nation on the additional economic and social relief measures that formed part of the government’s response to the pandemic.

This follows a cabinet meeting held on Monday and deliberations with the national coronavirus command council, the president’s co-ordinating council, and the national economic development and labour council (Nedlac), among others.

Ramaphosa said there were three phases to the response.

“We are now embarking on the second phase of the economic response to stabilise the economy and address the decline in supply and demand and protect jobs,” he said.

The president said the response required an extraordinary health budget, , the relief of hunger and social distress, support for companies and workers and the phased reopening of the economy.

Ramaphosa said the impact of the coronavirus required an “extraordinary coronavirus budget” of around R500bn to direct resources to fighting the pandemic.

This would include the prioritisation of around R130bn within the country’s current budget. The rest of the funds would be raised from both local sources such as the Unemployment Insurance Fund (UIF), and from global partners and international finance institutions.

“To date the World Bank, the International Monitory Fund, the Brics Bank and the African Development Bank have been approached and are working with national Treasury on various funding transactions,” he said.

“Some of these institutions have created financing packages that are aimed at assisting countries that are having to address the coronavirus crisis like us. This funding will be used in the first instance to fund the health response to coronavirus.”

Source: Business Live