(3 minutes read)
· South African President Cyril Ramaphosa is optimistic aboutthe future of troubled entities SAA and Eskom, despite the fall out ofthe Covid-19 and says that he is confident about the economy bouncing
back
· President explained the SAA’s business rescue plan, which isbeing finalized and the business rescue practitioners have asked foran extension till 8 June Referring to ESKOM, which is facing a debt burden of R450 billion,
President, said that its sales had taken a knock with businessesacross industries halting activity.
South African President Cyril Ramaphosa is optimistic about the future of troubled entities SAA and Eskom, despite the fall out of the covid-19 and says that he is confident about the economy bouncing back. While addressing the South African National Editors’ Forum, Ramaphosa explained how he was going to restructure the SA economy for a “new normal” post Covid-19, and how state-owned enterprises (SOEs) are going to be streamlined such as ESKOM and South African Airlines (SAA)
President explained the SAA’s business rescue plan, which is being finalized and the business rescue practitioners have asked for an extension till 8 June. However, he said that he was very optimistic about the airline and aviation sector of the country and assured that Johannesburg would be used as a hub to distribute Covid-19 medical supplies.
Referring to ESKOM, which is facing a debt burden of R450 billion, President said that its sales had taken a knock with businesses across industries halting activity. The power utility tmay report a loss of R16 billion for the 2020 financial year. He hoped that the government interventions in revamping the debt ridden power behemoth would bear fruits.
Ramaphosa gave a clarion call to all South Africans to buy local, as a form of patriotism to boost the economy and strengthen the industrial base. He highlighted how the pandemic has increased the employment opportunities for the social workers. They have to look after people who are negatively impacted by the Covid-19. His government would lay considerable importance to nurturing a care economy, apart from creating several new sectors in the green economy for promoting employment.
According to the South African Reserve Bank’s latest projections, the economy has to absorb a contraction of 7%, which is the worst performance since the global depression in the 1930s. Job losses estimated are anywhere between three million and seven million.
