President Cyril Ramaphosa has announced a R500 Billion stimulus package that will go towards protecting the economy from assisting enterprises with paying employees and payments of suppliers as well as other crucial parts of the economy such as paying out grants, protecting Jobs among others.
This grant will address the Economic and Social-economic needs of the country in partnership with major banks and the Treasure.
Following this, an infrastructure build programme will also be implemented. The details of these plans will be detailed in the coming days, said Ramaphosa.
R130 billion will be taken from the country’s existing budget and reprioritized to achieve this.
The UIF, global partners, and financial institutions – including the World Bank and IMF – have been approached on funding packages for the balance of the money South Africa will need.
The president said that funds will also be allocated to the healthcare sector and to social initiatives to ensure people have enough money to survive, and food to eat.
As a result, a special 6-month COVID-19 social grant will be given to qualifying South Africans.
Furthermore, a R200-billion loan scheme will be launched to assist local businesses. Companies may apply to the loan scheme through local banks, potentially before the end of the month, said Ramaphosa.
Ramaphosa said the country’s economy will be reopened gradually through a phased approach while continuing to assess risks which are evident.