Ramaphosa says the Covid-19 pandemic requires a strong economic response

President, Cyril Ramaphosa, says the coronavirus pandemic requires an economic response equal to the scale of the disruption it is causing.

Briefing the nation yesterday evening he announced a social and economic support package of 500-billion-rand which is 10% of the GDP.

Ramaphosa says an additional 100-billion-rand has been set aside to secure and create jobs.

He adds that a 200-billion-rand loan guarantee scheme in partnership with major local banks, National Treasury and the SA Reserve Bank will be introduced.

“This will assist enterprises with operational costs such as salaries, rent and payment of suppliers. In the initial phase companies with a turnover of less than 300 million rand a year will be eligible to participate in this scheme. It is expected that this scheme will support over 700 000 firms and more than 3 million employees through this difficult period.”

Ramaphosa says the country needs to act with agility and flexibility in the months ahead, especially as a phased re-opening of the economy starts.

“We will therefore follow a phased approach guided by the best available scientific evidence to gradually lift the restriction on economic activity. As we do so we remain firm in our resolve to contain the transmission of the virus. On Thursday I will address the nation on the measures that will be taken beyond the nationwide lockdown to reopen the economy.”

By: Gagasi FM News