VIDEO: A look at SA’s economy during Covid-19

CAPE TOWN- The extension of the South Africa’s lockdown by two weeks could add further pressure to businesses and the country’s economy as a whole.

Last week, President Cyril Ramaphosa announced that the initial 21-day lockdown would be extended by two weeks.

“The one word coming out during the Covid-19 pandemic is solidarity. Businesses, consumers, landlords and banks, I think the word that should be on all our lips should be solidarity and seeing how we can help each other through this crisis,”said Sam Mokorosi from Vunani Capital.

The lockdown will have a tough impact on the South African economy says Mokorosi, because South Africa does not have enough fiscal power to support the economy during this time.

“But we have seen that the reserve bank and the government is helping, we’ve seen donations to the solidarity fund. So all of this should cushion the blow,” he said.

With the lockdown being extended for a further two weeks, Mokorosi says he hopes there will be a “lockdown lite” where some industries will be allowed to go back to work. “People who can work from home and still carry on economic activity from home should be encouraged to do so,” he said.

“Business owners may not be aware but government has relaxed some of the regulations around UIF contributions, PAYE contributions, and all of these help smaller businesses to manage their cash flow. I think employers should make use of these type of tools,” said Mokorosi.

 

For LIVE updates on the Coronavirus pandemic, follow us on Twitter : @sacoronamonitor

 

CORONAVIRUS MONITOR