Political analyst, Ralph Mathekga has hailed President Cyril Ramaphosa’s R 500 billion economic package for the country to counter the impact of the COVID-19 lockdown.
In the relief efforts President Ramaphosa also announced that the department of Social Development has partnered with the Solidarity Fund, NGOs and community based organisations to distribute 250 000 food parcels over the next two weeks.
Mathekga says the announcement was unprecedented.
He says, “Socialism is alive, socialism is actually possible and it can actually be coordinated in partnership with the private sector or even the capitalists if you like. I’ve never seen anything more socialist and more intervention like this. I think it is going to be very difficult for some people to be unhappy about this, its looks to be quite comprehensive targeting the poor so this is quite phenomenal.”
In the video below, Development economist, Ndumiso Hadebe reacts to stimulus package:
R500 billion support package
Ramaphosa says the R500 billion support package will include the reprioritisation of R130 billion from the current budget.
A sum of R500 billion will come from international financial sources. The World Bank, the International Monetary Fund and the Brics Bank have been approached.
Some of the money will, in the first instance, be used to assist in the health response, including ventilators and hospital beds.
He says that the country’s economic strategy going forward will require a new social compact among all role players, to achieve inclusive growth.
Ramaphosa says, “We will forge a compact for radical economic transformation that ensures that advances the economic position of women, youth and persons with disabilities. Our new economy must be founded on fairness, empowerment, justice and equality. Our new economy must open new horizons and offer new opportunities to all South Africans.”
Child support grant
He says the child support grant will increase by R300 from the first of May and by an additional R500 from June to help people cope with the economic problems caused by the coronavirus.
Ramaphosa says while the lockdown has had devastating effects on the country’s economy, it’s nothing compared to the catastrophic impact the coronavirus would have had if it was allowed to go unchecked.
He says, “While we have put in place measures to protect the wages of workers in the formal economy and have extended support to small and medium and micro-sized businesses, millions of South Africans in the informal economies and those without employment are struggling to survive. Poverty y and food insecurity have deepened dramatically in course of just a few weeks. To reach the most vulnerable in our country we have decided on a six-month coronavirus grant.”
President Cyril Ramaphosa addresses the nation 25 days since lockdown:
INFOGRAPHIC: COVID-19 Stimulus Package:
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INFOGRAPHIC: SA’s COVID-19 response in stages:
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