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‘Unemployment grant not sustainable for basic living’

South Africa's economy has been hard-hit since the global coronavirus pandemic and a downgrade to junk status by ratings agencies Moody's and Fitch.
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Unemployed graduate, Hlengiwe Mkhwanazi, says a temporary grant of R350 will not be helpful in sustaining the basic needs of unemployed people. Although she has welcomes the grant, she says it is not enough to buy groceries that will last a month.

This comes after President Cyril Ramaphosa announced on Tuesday that unemployed South Africans would receive a grant of R350 for six months. This will be a part of a social relief and economic support package of R500 billion.

“After the pandemic, the government should provide a decent grant for unemployed people while creating job opportunities and fixing the economy,” says Mkhwanazi.

Mkhwanazi says her main concern is getting employment after the lockdown has ended.

She fears that the negative impact of the economy on businesses will lessen her chances of getting a job.

“We already know there’s a high unemployment rate in South Africa. I expect a lot of retrenchments after the lockdown since companies are losing money,” says Mkhwanazi.

South Africa’s economy has been hard-hit since the global coronavirus pandemic and a downgrade to junk status by ratings agencies Moody’s and Fitch.

South Africa currently has 3 635 confirmed coronavirus cases and 65 deaths.

SA President Cyril Ramaphosa on Tuesday announced the second phase of the country’s economic plan to deal with the COVID-19 pandemic.

In this video, Economist Rangani Mbalathi discusses the impact of the economic relief package:

 

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